Rebel INM board member refuses to step down

The boardroom in-fighting at Independent News and Media (INM) has taken an amazing twist with rebel board member Paul Connolly refusing to comply with a demand from chairman James Osborne to resign.

New levels of fractiousness are being reached in the extremely aggressive battle for control of Ireland’s largest media company.

This follows the unprecedented High Court action by Mr Connolly launched on Wednesdayin a bid to stop an “unduly generous” €1.87m severance payment being made to former INM chief executive Gavin O’Reilly, who was ousted from his post last week.

Mr Connolly, one of two directors on the INM board representing the company’s largest shareholder, telecomsbillionaire Denis O’Brien, was asked yesterday to resign by the INM chairman but resolutely refused to comply.

Mr Osborne argued that Mr Connolly was not acting in the best interests of the company when he initiated the High Court action to blockMr O’Reilly’s severance deal. On a motion tabled by Mr Osborne, the board then decided not to recommend Mr Connolly for re-election at thecompany’s AGM on June 8 next.

The other O’Briendirector, Lucy Gaffney, is understood to be the only other director to oppose the motion.

Yesterday’s board meeting also heard that another long-time director, Margaret Jay, is not seeking re-election.

On Wednesday, fellow independent director Bengt Braun said that he was not seeking re-election.

INM once had the largest board of any Irish listed company.

A company insider said: “It’s like Game of Thrones without the horses.”

INM chairman James Osborne is regarded as his own man in the long-running battle between the the O’Brien and O’Reilly camps for dominance at the company which owns the Irish Independent and Sunday Independent newspapers.

Within a week, MrOsborne has presided over the exit of the chief executive of INM, Gavin O’Reilly, and demanded the resignation of O’Brien’s lead director Paul Connolly.

Mr Osborne is alsoseeking re-election at INM’s June AGM and will need the support of institutional directors to retain his post.

It is expected that MrOsborne is unlikely to face defeat.

On Monday next the High Court will hear Mr Connolly’s action to block the “unduly generous” severance payment to Mr O’Reilly.

The stance taken at yesterday’s board meeting by Mr Osborne is being taken as an indication that INM will robustly fight the action, which is against INM only, and does not involve Mr O’Reilly.