INM and Lebedev set to agree sale of titles this week

INDEPENDENT News & Media (INM) is expected to complete the sale of its loss-making London-based newspaper titles – the Independent and Independent on Sunday – to Russian billionaire Alexander Lebedev this week.

Mr Lebedev – who owns London’s iconic evening title, the Evening Standard – has been in exclusive talks with INM management, over acquiring the titles, since before Christmas. That exclusivity agreement was not extended for a third time last week, when the latest deadline passed, only because it is understood that a final agreement has almost been reached.

Although it was thought INM might make an announcement yesterday, none materialised but it is strongly believed that the sale will be completed before the end of the week.

Quotes attributed to Mr Lebedev, towards the end of last week, where he said a deal was ready to be done coupled with the fact that INM lodged a submission to Britain’s Office of Fair Trade, to peruse the deal, indicated a basic agreement had been reached. Reports in the British press have suggested that post disposal, the London based titles will continue supply articles to INM for use in some of its titles in Ireland and South Africa, in an add-on agreement. A major part of a successful deal – which seems unlikely to result in INM making any money on the sale – is rumoured to be INM sharing the cost (with the Russian) of a 10-year printing deal for the two titles. Some INM shareholders – particularly businessman Denis O’Brien – have constantly called for the sale of the London newspapers, which are estimated to be losing close to €30 million per year. Their new owner is also expected to slash the titles’ cover prices to promote sales.