Independent News & Media is not actively seeking a partner to invest in its British broadsheet, the Independent, but it is understood to have received a number of approaches about selling a stake.
A report in the British press yesterday said the newspaper group, controlled by Sir Anthony O'Reilly, had offered rivals the chance to buy a stake of about 30 per cent in the newspaper in an attempt to raise capital for a major marketing push.
Among those mentioned in connection with such a deal were Associated Newspapers, publisher of Britain's Daily Mail, and Trinity Mirror, owner of the Mirror newspaper.
A spokesman for Independent News & Media declined to comment last night on market rumours or speculation.
But sources close to the company described the speculation as "very premature".
It is understood, however, that the recent success of the compact edition of the Independent - which has seen circulation increase by more than 20 per cent to 260,000 since the introduction of the smaller format last September - has attracted interest from other players in the UK newspaper industry.
The Dublin-based group is likely to look at any approaches, particularly in light of the high price achieved by the recent sale of the Daily Telegraph, which was sold at 19 times earnings before interest, tax, depreciation and amortisation (EBITDA).
But analysts questioned whether now would be the right time to sell a stake in the Independent, noting that the newspaper was still loss-making and not expected to reach break-even until 2006.
"The price attached to a minority shareholding may not fully reflect the longer term prospects for the publication," said Ms Brid White, analyst at Merrion Stockbrokers.
NCB also said management could achieve a better price from any sale of the paper if it were to wait until profitability has been restored.
"If we assume that the group hits our 2008 target of EBITDA profits of £8 million (€11.6 million), a 30 per cent stake could raise £33 to £50 million," NCB analyst Mr Shane Matthews said.
He also noted that any sale at present could hinder the group's ability to manage the large tax losses of around £100 million sterling that are currently attached to the title.
