O’Reilly may take full control of media group

IRISH INDEPENDENT owners, Independent News & Media’s share buy- back scheme will trigger a full bid for the company by executive chairman Sir Tony O’Reilly if it continues.

Yesterday, Independent News & Media (INM) disclosed to the Stock Exchange that its share buyback vehicle, the wholly-owned subsidiary Independent Newspapers Management Services (INMS), now holds 1.94% of the company.

The combined shareholdings of Sir Tony circa 26.8%, the board circa 2.6% and INMS 1.94% appears to push the holdings over the key 29.99% level, which under rule nine triggers the requirement for a full bid for thecompany.

A spokesman for the Irish takeover panel would not comment on the issue yesterday and queries to INM went unanswered.

Independent’s share price fluctuated wildly yesterday.

By 12.30 pm the share price had fallen by 7.4% to five-year lows of €1.25, but by close of business had reversed the drop to end up 1.45% on the day at €1.37. INM went to the market twice yesterday as its buyback scheme continued.

The current level of shares held by the company indicates, that at the very least, the share buy-back scheme is about to come to an end.

On the other hand if it continues it will, or already has reached a level which could result in a full bid for the company.

At close of business last night INM had a market capitalisation of €785 million, but also has debts of close to €1.3 billion.