Businessman Denis O'Brien has increased his stake in Sir Anthony O'Reilly's Independent News & Media (IN&M) for the second time in less than a month, a move that brings his share of the company to 8.35 per cent. Arthur Beesley, Senior Business Correspondent, reports.
Mr O'Brien's declaration that he had bought another 1.05 per cent of the company comes days after IN&M made three forays into the market to buy up its own stock at a cost of €38 million. That manoeuvre was widely interpreted as an attempt to prevent Mr O'Brien from increasing his stake.
The company is said to have commissioned professional advice on a defence strategy to counter any future approach for the company from Mr O'Brien.
IN&M is also seeking shareholder approval to strengthen its internal rules on the disclosure of beneficial interests in the company. If endorsed at an extraordinary general meeting next week, the new rules would increase the company's power to monitor any further accumulation of shares by Mr O'Brien.
Market sources said Mr O'Brien started to buy additional shares in the weeks immediately after his declaration on May 8th that he had increased his stake to 7.3 per cent from 5.1 per cent.
The sources said this was before IN&M said on May 25th that it had bought up 1 per cent of its stock, a move it followed with two more purchases at up to €3.80 per share.
Mr O'Brien's 64.165 million shares in the company are held by AIB Nominees, Barclays Bank, Goodbody, Merrion and Davy. He did not declare the price at which he bought the shares in his latest buying round.
A spokesman for Mr O'Brien said he had "no comment whatsoever" when asked last night whether Mr O'Brien planned to buy more stock or bid for the business. His latest purchase of shares comes two months after he was reported to have placed an order to double his stake in IN&M to some 10 per cent.
Asked about Mr O'Brien's decision to increase his stake, an IN&M spokesman said: "It's an attractive stock. I've no comment beyond that."
IN&M shares closed down 10 cent at €3.60 in a very weak market, a price that values Mr O'Brien's interest in the business at €230.99 million.
He first bought into IN&M in January 2006, when the stock was trading at about €2.54.
