FUND managers controlling shares in ITV want changes at the top of the leading free-to-air commercial broadcaster after the management’s latest attempts to turn round its ailing fortunes failed. Leading investors are understood to hope that Charles Allen, the group’s chief executive, or Sir Peter Burt, the former banker who chairs the board, will bow out gracefully rather than waiting to be pushed.

Investors backed the board in April when it turned down a controversial partial bid led by Greg Dyke, the veteran television executive, and funded by Apax, Goldman Sachs and Blackstone private equity groups. However, leading shareholders such as Fidelity and UBS are thought to have been sympathetic to a more conventional takeover offer. Apax and Goldman are still interested but at a lower price than the 130p envisaged before.

Sir Peter and Mr Allen accepted at the time that City support depended on success in the latest strategy. This involved cutting costs, boosting viewing figures and reversing the downward trend in income affecting most non-internet media businesses that rely on advertising.

Mr Allen hoped that the World Cup would turn the tide, but the opposite happened. Advertisements booked to cover the tournament showed only modest increases to offset extra costs of broadcasting the matches.

Viewing figures also disappointed. The BBC usually attracts more viewers for big events covered by both channels, but its five-to-one lead for the World Cup final was demoralising.

Sales of advertising for September are down about 12 per cent and this could form the pattern for the autumn. A new schedule of programmes has been developed to stem ITV’s loss of audience share, but any impact will not be felt until well into 2007.

Mr Allen has been more successful on other fronts. He has negotiated with Ofcom, the industry regulator, to cut the overhead cost of the broadcaster’s franchise and the cost of some broadcasting obligations.

ITV’s board, nonetheless, has been under pressure for most of the time since it was formed from a merger of Granada and Carlton in February 2004. The City has been unhappy because ITV shares have proved a poor investment. Over the period, they have fallen by 30 per cent while the FTSE 100 index has risen by more than that.

ITV shares have also fallen below 100p for the first time in two years. The broadcaster’s higher echelons were ripe with rumours of impending top-level changes on Friday. The group is expected to report unimpressive half-year results on August 9.

At the end of August, Mr Allen is scheduled to give the MacTaggart lecture at the Edinburgh International Television Festival. The former Granada boss, 49, could use this as his swansong if he chooses to bow out early of his own accord and on his own terms.

He was said to be considering his options over the weekend. The share price reaction this morning to the prospect of a top management change could affect his decisions. The City is, however, almost equally critical about the role of Sir Peter, whose head could be offered as an alternative.

John Smith, of BBC Worldwide, Stephen Carter, the retiring Ofcom regulator, Andy Duncan, of Channel Four, and Michael Jackson, a former Channel Four chief executive, have been mentioned as possible successors.

TALE OF WOE

• Shares close at 96p on Friday, down from 140p in February 2004
• BBC draws 17m World Cup final viewers, ITV 3.4m
• Advance advertising bookings for September down by 10-12 per cent
• Allen forced to promise £100 million in savings
• Fights off 130p-per-share bid by Greg Dyke in April, but other buyers circling

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax