O'Reilly to step down as IN&M CEO

Gavin O'Reilly is to depart as chief executive of Independent News & Media, the company has confirmed.

Chief operating officer Vincent Crowley is to take over from O'Reilly as an executive director and CEO with immediate effect, the company said in a statement.

“After 19 eventful years with the company, it is time for me to pursue new opportunities," O'Reilly said.

"It had become clear that recent and public shareholder tensions were proving an unnecessary distraction for both me and the company and this was not in the best interests of the company."

Chairman James Osborne said: "Gavin has led the company with considerable skill and talent, especially through the very complex restructuring in 2009.

"Gavin leaves by mutual and amicable agreement and has the great appreciation of the board and that of his colleagues. On behalf of all of INM’s stakeholders, I wish to thank Gavin for his contribution to the business.”

A special IN&M board meeting was held this afternoon after it emerged an anonymous buyer had acquired 2% of the company.

O'Reilly was appointed as CEO of the Irish operations of IN&M in 1999 and oversaw the move of the company's printing operations to Citywest Business Park. He was made group CEO in December 2001 and appointed to the board in 2004.

Crowley joined INM from KPMG in 1990. He was appointed group COO in November 2009 having been chief executive of Independent News & Media (Ireland) Limited since 2002. He was previously CEO of APN. He was appointed to the APN Board in March 2009.

The move means that for the first time in almost 40 years a member of the O'Reilly family will no longer be at the helm of IN&M.

It comes about a struggle for control of the company, Ireland's largest newspaper publisher, between the O'Reilly family and its largest shareholder, Denis O'Brien.

INM has a revenue of about €558m worldwide and employs about 2,900 people, with its main interests in Ireland and South Africa.

The dramatic resignation at an afternoon board meeting comes after intense pressure and speculation that Mr O’Brien – the largest shareholder with 22% of the business – would try to force him out at the AGM in June.

Mr O’Reilly led the company for the last three years after a turbulent financial restructuring. The family’s control was first diminished when Tony O’Reilly’s stake was cut to 14% by lenders swapping debt for equity.

Mr O’Brien has become more and more aggressive over the last two years with much media comment over his supposed bid to take over the group. He already holds significant radio interests with more than 40 stations in eight countries and several Dublin-based stations.

It is understood the crucial tipping point for a takeover would be a 35% stake.

Last week, businessman Leslie Buckley, a former representative of Mr O’Brien on the INM board until he was ousted a year ago, declared that INM needed new leadership.

He also raised questions about what the company was doing about a €147m pension deficit.

That followed a withering attack by Mr O’Brien against the Sunday Independent over its reporting of him and his appearances with Government Ministers, including Taoiseach Enda Kenny during a visit to the New York Stock Exchange.

Mr O’Brien was found by the Moriarty Tribunal to have secured victory in a competition for a hugely lucrative mobile phone licence in Ireland thanks to former Minister for communications Michael Lowry.

The long-running inquiry, which reported last year, found Mr O’Brien made two payments of about IR£500,000 to Mr Lowry, in 1996 and 1999. He was also found to have supported a loan of IR£420,000 for Mr Lowry in 1999.

No findings of corruption were made and Mr O’Brien has rejected the tribunal’s conclusions.

A spokesman for Mr O’Brien has said the reporting in the Sunday Independent, Ireland’s best-selling Sunday paper, was “one of the most concerted and biased campaigns ever waged against any individual in this country”.

Mr O’Brien’s aide wrote to Michael Denieffe, managing editor of INM, to complain and also issued the letter to the media.