The beginning of a new era at INM, says biggest critic

PEACE has seemingly broken out between the leading shareholders in Independent News & Media (INM), with Denis O’Brien welcoming the prospect of Gavin O’Reilly becoming the new chief executive of the group and hailing yesterday’s wide-reaching board change proposals as “the beginning of a new era” at INM.

Mr O’Brien — who is the second largest shareholder in INM with a 26% stake — has been a fierce critic of the board for some time and a leading lobbyist for a smaller board featuring fewer business associates of Tony O’Reilly. Now, he not only has his wish but also real representation on the board through three of his own business associates in Lucy Gaffney, Leslie Buckley (both founding directors, along with Mr O’Brien of the Digicel international telecommunications group) and former Esat Telecom director Paul Connolly.

That move, alone, shows how much has changed at INM in the past year. At last summer’s annual general meeting, in London, Gavin O’Reilly said that given the manner in which Mr O’Brien had gone about building his shareholding in the group, it was unlikely that he would be permitted a seat on the board if he were to seek one. Prior to that meeting, INM management also dubbed Mr O’Brien a “dissident shareholder”, claiming his stake-building was aimed at destabilising the company.

Mr O’Reilly said yesterday that previous rivalries were in the past and that the new board changes were a triumph for common sense and for all shareholders.

Mr O’Brien has had a bitter business rivalry with the O’Reilly family since the late 1990s. He initially bought into INM in 2006, when he spent e53m on acquiring a 3% stake.

In a statement, Mr O’Brien, said: “I hope the new board will bring forward a series of wide-ranging decisions which will, in time, result in a stronger company, soundly structured to meet the challenges and avail of the many opportunities.

“I am confident that these changes will strongly position the group to meet the immediate financing challenges in the current economic climate.”

He also thanked Tony O’Reilly Snr for “his long-standing contribution to the company”.

INM said earlier this year that its latest set of full-year results — due at the end of this month — will likely show a 3% decline in group revenue to around e1.4bn.