LONDON, Sept 9 (Reuters) - Sports Direct's board and majorshareholders in the troubled British retailer held"constructive" talks as they sought to rebuild trust after astormy annual meeting, a group representing 15 percent of thecompany's shares said on Friday.
The Investor Forum, which comprises 40 asset managers,insurance companies, pension funds and endowments, said themeeting was held after Wednesday's shareholders' meeting atSports Direct's headquarters in Shirebrook, central England.
Shares in Sports Direct were up 4.5 percent at 335pence at 0820 GMT.
With politicians condemning Sports Direct for "Victorian"working conditions and its stock down 60 percent in a year,independent shareholders had targeted Chairman Keith Hellawellat the AGM, with most of them not backing his reappointment.
Mike Ashley, the founder of the discount sportswear chainwho still holds a 55 percent stake, repeatedly apologised at theAGM for what he said were serious mistakes in the way staff weretreated and he vowed to rebuild the firm.
"The focus of the meeting (chaired by the Forum) was to sortof begin re-building trust between investors and the board,"Phineas Glover, senior adviser with the Investor Forum, toldreporters.
He said the forum's focus is on Sports Direct's governancereview.
"We're committed to work with the board. They're committedto work with us, particularly over the next three months, whichis a crucial period now, we feel, for the company."
Another Sports Direct shareholders' meeting is required tore-elect the chairman in three months time.
On Wednesday, Hellawell accepted the board's request to stayon as chairman. He told the AGM he would step down next year ifhe did not receive the backing of independent investors.
"A common refrain in investor stewardship is: Has thecompany grasped the nettle? Change isn't easy in thesecompanies, particularly when they're extremely fast growing,entrepreneurial businesses," said Glover.
"But I think Keith is going to grasp the nettle now." ($1 = 0.7514 pounds) (Reporting by James Davey; Editing by Hugh Lawson)
