Shareholders attempt to oust Mecom chief
09 Sep 2010
Chief executive of pan-European newspaper group Mecom, David Montgomery, is attempting to thwart a move by shareholders who want to oust him from the position.
In January last year Montgomery had put down a revolt that saw six directors resign and is understood to be in the process of halting a move from Aviva, Invesco and Legal & General to try and replace him with Patrick Tillieux, a former senior executive at broadcasters SBS.
According to reports, Aviva Invesco and Legal & General have had meetings recently with non-executive directors of Mecom, supported by Invesco, who did not attend.
The rebel shareholders aim to replace Montgomery by 22 October, when the financial performance of the company is next reported.
The rebel shareholders plan to break the company up and concentrate on the Netherlands, Mecom's biggest operation, and also oust chief operating officer Keith Allen.
However, the board of Mecom is understood to have rejected the plan proposed by the rebel shareholders who between them hold 50 per cent of the company which leaves the option of an extraordinary general meeting to force a vote over the proposed changes.
Mecom has slashed costs, selling off a number of newspaper operations and raised £140 million from investors to weather the downturn and put the debt-laden business back into growth.
