I-Touch shares jump as takeover talks revealed

SHARES in I-Touch shot up yesterday after the company, part-owned by Independent News & Media, said it was in takeover talks.

The company, which sells mobile phone ringtones, said it is in "preliminary discussions which may or may not lead to an offer for the company." It said the takeover was being evaluated as part of a number of strategic options for its long-term future.

The company said the potential bidder was British listed firm MonsterMob, which develops polyphonic ringtones, java games and wallpapers for mobiles.

I-Touch, which is listed on the London stock market, saw its shares rise 3.75p to 36.75p. Independent Newspapers has a stake of about 30% in the company.

Meanwhile, it was reported yesterday that Tony O'Reilly's London Independent is facing an industrial relations crisis.

The Guardian newspaper said journalists at the Independent will vote next week to take strike action over a pay claim.

The National Union of Journalists, which represents the reporters on the title, had been in discussions with management, who have offered a 3% pay rise but these talks broke down last week.

The union said given the improved circulation at the paper up 30% since it converted to a tabloid format and the bonuses handed out to senior executives, it wanted a larger increase and was also concerned that some employees were on very low pay.

The London Independent had been in financial crisis for a number of years but the conversion to tabloid has seen a surge in sales and the title is now expected to break even in the next year.

The union's hopes of getting more than 3% were dented after it was disclosed that 90 jobs on the rival Daily Telegraph were to be cut.

The job cuts will part-fund a £150 million investment in print facilities, executives claimed.

In a letter to staff, chief executive Murdoch MacLennan said the group had to invest "substantially" in its publications if it was to survive and prosper.

"The £150m investment programme will be funded in part by a major re-shaping exercise across the entire organisation," he said.