O’Brien challenged to bid for IN&M

EXECUTIVES at Independent News and Media (IN&M) have thrown down the gauntlet to the company’s biggest shareholder — telecoms billionaire Denis O’Brien — to make a bid for the company “if he wants to control it”.

Yesterday, a spokesman for Mr O’Brien said they would not be commenting on the IN&M challenge.

It is understood that Mr O’Brien’s reluctance to comment relates to strict Takeover Panel rules&.

Skirmishes between Mr O’Brien and IN&M management erupted into open warfare after Mr O’Brien demanded that IN&M chief executive Gavin O’Reilly and chairman Brian Hillery be replaced.

Tensions between Mr O’Brien — IN&M’s biggest shareholder with a 21.6% stake — and the company and family of Anthony O’Reilly, who hold 14% of the shares, have been evident for years but became severe in recent months after Mr O’Brien’s nominee, Leslie Buckley, was voted off the company’s board at its AGM in June.

Mr O’Brien has sought to have Mr Buckley reinstated to the board and now wants Mr O’Reilly and Mr Hillery removed.

Yesterday, a spokesman for IN&M said: “Denis O’Brien is clearly trying to take control of this company and if he wants control of it, then he should make a bid. A bid would of course be considered by the board.”

Mr O’Brien had a private meet with IN&M chairman Mr Hillery at Dublin’s Red Cow Inn in August, when he failed to get a commitment that Mr Buckley would be reinstated to the company’s board where his other two nominees, Paul Connolly and Lucy Gaffney, remain in situ.

Mr Hillery indicated, before Mr O’Brien’s request that he quit, that he will depart by the end of the year. The search has begun for a replacement.

It is understood that IN&M are still looking for a suitable candidate and have sounded out, among others, Clive Milner, a former chief operating officer of News International where he had responsibility for The Times, The Sunday Times, The Sun and the now-defunct News of the World.