Grade 'unfazed by Pinewood criticism'

Former ITV chairman Michael Grade has defended himself against criticism from a major Pinewood Shepperton investor calling for him to quit as chairman of the film studio.

Grade, who stepped down as ITV's executive chairman last year, has acted as Pinewood's chairman since being involved in a management buyout of the famous studios in 2000.

However, he was heavily criticised by investment fund Crystal Amber ahead of the company's annual meeting yesterday in London.

Crystal, which holds an 18% stake in Pinewood, claimed that Grade had been guilty of "poor stewardship" of the studios.

The fund criticised Grade on a range of issues, including the value of Pinewood's property assets, and called for fresh leadership of the board.

In response, Grade claimed that he has the support of the majority of Pinewood shareholders, who are happy with his leadership of the company.

"Our latest discussions with our other major shareholders, representing a clear majority, give us confidence that they support the board, its stewardship and strategy," said Grade.

"The board will continue to run the business in the interests of shareholders as a whole."

Pinewood, which is most famous for the James Bond films, was floated on the stock market in 2004, but has seen profits tumble by around half since then.

Crystal, which invested in Pinewood after seeing underlying value in the business, approached the board in February with ideas on how to improve the company's performance.

"Although these proposals were initially received well by management, we have seen no action and subsequent meetings with Mr. Grade have been unproductive," said Crystal's investment adviser Richard Bernstein.

"We have experienced his poor stewardship of shareholder interests at first hand and have regrettably come to the conclusion that he has neither the desire nor the wherewithal to deliver."