Divisions within the board of supermarket group Morrisons over strengthening non-executive representation look likely to come to a head over the next few days.
Sir Ken Morrison is said to be preparing to reject nominations put forward by the company's only non-executive director, David Jones.
Weekend newspaper reports will alarm investors who fear such a move would force Mr Jones to resign. The City is reeling from five profit downgrades this year as Morrisons struggles to incorporate Safeway supermarkets, which it bought last year for £3bn. More than £2bn has been wiped off the value of the firm since the deal.
Mr Jones has been charged with drawing up a short list of potential candidates for non-executive positions but they have not impressed Sir Ken, the 74-year-old executive chairman of the company which he founded. He said last month he would step down from day-to-day running of the firm to concentrate on strategic vision but promised to stay on for a further year to oversee the integration of Safeway.
"The shareholders are extremely supportive of the role of David Jones in terms of wanting to bring in four non-executive directors," said one City source. "Sir Ken is understood to be being somewhat difficult about this process.
"The institutional shareholders agreed to step back to allow the firm to meet its timetable." Morrisons has admitted profits this year could be £50m, compared with the £600m formerly predicted by analysts.
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