Metro Bank shareholder Legal and General Investment Management has revealed plans to vote against chairman Vernon Hill's re-election, ramping up pressure on the U.S. founder.
LGIM, which has a 2.02 per cent stake in Metro, has said it will vote against Hill's reappointment at the meeting, and it is thought others could follow suit.
Shareholder Royal London Asset Management also revealed it would reject Hill's re-election, and will also vote against chief executive Craig Donaldson.
Earlier this month, a filing showed Fidelity Management & Research, once Metro Bank's second-biggest investor, had cut its stake by almost a third. Finally, Goldman Sachs Group lowered their target price on Metro Bank from GBX 1,700 ($22.21) to GBX 1,150 ($15.03) and set a "neutral" rating on the stock in a research report on Friday, March 1st.
Metro Bank has severed links with the architecture firm owned by the wife of its chairman amid criticism over £25m worth of payments made by the lender to the business.
Metro raised more than the £350m it had planned to raise, due to the placing being oversubscribed it said.
InterArch was paid £4.5m a year ago for architectural, brand and marketing services - including designing high street branches - bringing its total earnings from the bank contracts to more than £25m since Metro was founded in 2010.
Short bets involve paying to borrow the shares before selling them on to another investor, hoping to buy them back at a lower price before returning the stock to the original owner.
"Given a large short base, we could see some pricing support tomorrow (Friday), though we remain cautious on the longer-term outlook", Morgan Stanley analysts said late on Thursday.
Shares in Metro Bank were up 19.85% at 643 pence by 0714 GMT on May 17.
British customer deposits are guaranteed up to 85,000 pounds if a bank gets into financial difficulties and post-financial crisis rules mean deposits can be moved to another bank more easily to ensure continuity of service.
However, Metro is still facing investigations by UK's two City regulators - the Financial Conduct Authority and Prudential Regulation Authority - over the accounting error.