The editor of India's largest circulated Hindi language daily newspaper has declined to confirm or deny media reports suggesting it was planning an equity investment deal with Independent News and Media.
Mr Sanjay Gupta, editor and promoter of the Dainik Jagran newspaper headquartered in Kanpur in north India, yesterday refused to comment on reports over the weekend that Sir Anthony O'Reilly, chief executive of Independent News & Media was on the verge of acquiring a 30 per cent stake in his newspaper.
However, IN&M is expected to issue a trading statement mid-week and it is widely expected that this will include further details on a move into the Indian market. Investment officials point out that the equity stake reportedly being offered to the Irish company by Dainik Jagran cannot exceed 26 per cent under the current policy guidelines that were cleared by the outgoing Hindu nationalist-led federal coalition in June 2002.
Indian media laws were re-written to allow foreign ownership of up to 26 per cent in newspapers and television news broadcasters and 74 per cent in non-news publications.
Meanwhile, media analysts said Dainik Jagran, with an annual advertising revenue of 2 billion rupees (€331 billion), was looking for overseas investment in order to launch its own television channel next year.
It had reportedly allocated Rs500 million for this project and consequently needed additional funding to meet its requirements.
Earlier this year Dainik Jagran, which has a daily circulation exceeding 15.7 million, announced ambitious expansion plans at home and abroad.
Dainik Jagran is a technologically advanced, all-colour newspaper.
It also enjoys a reputation as a credible newspaper with a large team of correspondents spread across the country.
Its readership is mostly urban, some 2,108,000 copies more than its nearest competitor.
Shares in IN&M were little changed yesterday, closing one cent lower at €2.26 but market sources in Dublin expressed some caution about a move into the Indian market.
"Any time you use a hard currency to pay for a soft currency, you need to be sure you are able to get your money back out," one market source noted.
