Guardian Media CEO quits Tesco board amid libel case

LONDON (Reuters) - Guardian Media Group's Chief Executive Carolyn McCall has resigned as a non-executive director at Tesco (TSCO.L) as the supermarket giant pursues a libel case against the company's Guardian newspaper.

The country's biggest retailer said in a statement on Thursday that McCall, who this week won a Veuve Clicquot Business Woman of the year award, was standing down due to the conflict of interest involved.

She has been on Tesco's board since March, 2005.

McCall noted in a statement that she regretted having to resign, adding it would be inappropriate to stay in the role.

Tesco said on April 4 it had begun legal proceedings against Guardian News and Media, which publishes the Guardian, and its editor Alan Rusbridger for libel and malicious falsehood. The action relates to allegations made by the Guardian in a series of articles and a Web podcast concerning Tesco's tax affairs.

Guardian News and Media is the national division of Guardian Media Group. It also publishes the Observer newspaper and owns the guardian.co.uk Web site.

(Reporting by Gavin Haycock; editing by Rory Channing)