Mirror faces shareholder pressure

The Government says the images were not taken in Iraq

The Daily Mirror is facing pressure from key shareholders over its coverage of alleged abuse by British soldiers against prisoners in Iraq.

Some investors in parent firm Trinity Mirror have expressed growing unease over the newspaper's story, the BBC's business editor Jeff Randall says.

Controversial pictures in the UK paper showed what it said was the abuse of an Iraqi detainee by British soldiers.

But the Government said the photographs were fake.

News of shareholder disquiet came as the Daily Mirror's editor, Piers Morgan, announced he was quitting his job.

In a statement, the Mirror said it accepted that the pictures were fake, but added it had "published in good faith photographs which it absolutely believed were genuine images of British soldiers abusing an Iraqi prisoner".

Shares in Trinity Mirror closed down 2 pence at 615 on the London Stock Exchange, ahead of the announcement of Mr Morgan's departure.

Reputation worries

Some of Trinity Mirror's biggest investors are based in the US.

They are understood to have concerns about the ethical issues and possible damage to the Daily Mirror's reputation from the publication of the photographs.

The Mirror has gone off on a tangent to the rest of the newspaper world. It is an aggressive strategy but it hasn't really paid off Henk Potts, Barclays Private Clients equity strategist Check Trinity Mirror's shares

Mr Morgan had previously defended his decision to print the images, saying they "accurately illustrated the reality about the appalling conduct of some British troops".

Trinity chief executive Sir Victor Blank last week backed the paper's reports into alleged abuse by British soldiers.

But Henk Potts, an equity strategist at Barclays Private Clients, said the paper's decision to print the images could back fire against it.

Anti-war

"The Mirror has gone off on a tangent to the rest of the newspaper world. It is an aggressive strategy but it hasn't really paid off," he said.

TOP TRINITY MIRROR INVESTORS Capital Group: 11.39% Fidelity Investments: 7.23% Standard Life: 6% Tweedy Browne: 5.46% Legal & General: 4.18%

Mr Potts said investors in the US may have been surprised by the Daily Mirror's aggressively anti-war line.

"Traditionally the Americans have far more patriotic newspapers in wartime," he said.

"Perhaps they're not used to it, and it may make them a little nervous. "

Geoff Lindley, corporate governance strategy advisor with investor group NAPF said: "It is an organisational matter but shareholders would expect the board to uphold the integrity of the company."