Businessman Denis O’Brien has moved a step closer to bidding for Independent News & Media by increasing his stake in the newspaper group to 29.9 per cent.
It emerged today Mr O’Brien has bought a further 2.9 per cent stake in the company, bringing his holding to 29.9 per cent, the maximum he is allowed to own without making an outright bid for the company.
Under stock market rules a stake of 30 per cent or more would oblige Mr O’Brien to make a bid for the entire company.
A spokesman for Mr O’Brien declined to comment, but his latest purchase has increased speculation that he will bid to take over Ireland’s biggest media group.
Yesterday, he spent €9.63 million to increase his shareholding in Independent News & Media (INM) to 27 per cent, heightening speculation he might be lining up a bid for the entire company.
Mr O’Brien paid 35 cent a share for the stock, which is believed to have been sold by institutional shareholder Investec. It is understood that Investec had been seeking to sell these shares for the past two months. This amounted to a 5 per cent block of shares, and boosted Mr O’Brien’s holding from its previous level of 22 per cent.
The price represented a steep premium to INM’s closing share price on Wednesday of 27.5 cent.
The shares were acquired through Bloxham Stockbrokers in Dublin, which had previously purchased INM shares for Mr O’Brien.
Mr O’Brien’s share-buying comes just five weeks before INM holds its agm and follows hot on the heels of the departure of Gavin O’Reilly as chief executive. Mr O’Brien’s increased shareholding should bolster the chances of Paul Connolly’s re-election to the INM board at the upcoming agm.
Mr Connolly is one of two representatives of Mr O’Brien on the board of INM.
A majority of INM directors decided last week to recommend to shareholders that Mr Connolly be voted off the board for failing to act in the best interests of the company.
Mr Connolly has initiated legal action against INM in relation to a €1.87 million compensation payment made to Mr O’Reilly on his departure from the media group last month. Mr Connolly is seeking to have the payment declared as unlawful, and the case is due to be heard in the Commercial Court on June 6th.
A majority of shareholder votes cast at the agm would be required to remove Mr Connolly from the board.
Last year, Leslie Buckley, then a representative of Mr O’Brien on the INM board, was voted off by shareholders.
