THE OPTIONS for Independent News & Media's (IN&M) proposed sale of its 39.1 per cent stake in Sydney-based media company APN narrowed yesterday after Australian media company Fairfax ruled itself out of the process.

Although some analysts believe competition concerns were likely to rule out a bid for the stake from Fairfax, it was seen until yesterday as a contender for the shares.

However, Fairfax's New Zealand paper the Dominion Postquoted company chief David Kirk as saying "we don't have any intentions with APN and we won't be part of the process".

In Wellington to speak to clients of a local sharebroking firm, he said: "There were no assets that we were particularly seeking."

In addition, he ruled out Fairfax buying APN's title the New Zealand Heraldas a stand-alone investment should it be sold in a break-up of the company.

Mr Kirk said Fairfax wanted to retain an investment-grade rating and spare cash would go to pay debt as a priority.

With such a low share price at present, Fairfax would not be "remotely interested in raising equity for an acquisition".

There was no comment on such remarks yesterday from IN&M, which has said the review of its APN shares followed "a number of expressions of interest".

Other potential bidders for its APN shares include television and magazine company Seven Network and West Australian Newspapers.