O’Brien link aids IN&M shares

SHARES in Independent News & Media surged by more than 6% yesterday on speculation that investor Denis O’Brien had bought more shares in the firm.

Mr O’Brien who has spent around €56 million buying up a 3% stake in the group, is now sitting on paper profit of around e1m on his investment.

Shares in IN&M rose by 16 cents, or 6.37%, to end the day at €2.67. Some 26.7 million shares were traded on the day, much more than the average daily turnover and one broker speculated Mr O’Brien may have been in the market.

A spokesman for Mr O’Brien had no comment to make on the reason for the investment&.

The investment by Mr O’Brien, whose fortune is estimated at around e500m, in the group has puzzled the market.

The businessman, who is based for tax purposes in Portugal, has some media interests - mainly in radio stations in Dublin and Eastern Europe - but has most of his wealth tied up in the telecoms sector.

A takeover & would be difficult. The O’Reilly family owns over 26% of the company and is not considered a likely seller.

Sources close to the group also believe that suggestions that Mr O’Brien bought the shares to influence the company’s editorial policy are also misplaced.

Mr O’Brien once claimed that Independent Newspapers had launched “outrageous attacks against me and my company”.

The pair last clashed over the battle for Eircom in 2000. Mr O’Reilly’s Valentia consortium beat an offer from Mr O’Brien to land the telecoms operator.