Virgin Media investors want to discuss company’s strategy
Tuesday, May 15, 2007
Virgin Media announced weak results last week, in part due to competition from Sky. Virgin Media lost 47,000 customers from January to March 2007, while Sky gained 51,000 customers in the same time period.
Franklin Mutual Advisers, which has 9.4% of the Virgin Media shares (Sir Richard Branson owns 11%) wants to have a meeting with Virgin Media about its “strategic direction, corporate governance and management”. Franklin Mutual Advisers is known to take great interest in the companies in which it invests.
This has caused many of the other investors of Virgin Media to demanding meetings with the management of the company. The demands are due to confusion among shareholders at the direction in which the company is heading, The Guardian reports. After the attempt to buy ITV was stopped last year, the shareholders think that Virgin Media may lose its battle with Sky and TalkTalk.
Another issue causing concerns amongst investors is the £25.2 million pay cheques for the top seven executives of Virgin Media. Virgin Media reported a £15.3 million loss last year.