Irish Press plc is to spend up to €450,000 on a share buy-back after getting approval for the move from shareholders at a stormy shareholders' meeting yesterday. Barry O'Halloran reports.
The owner of the defunct Irish Press titles succeeded in getting support for the proposal to buy back 60,000 shares at €7.50 each at an extraordinary general meeting (egm) that followed its annual general meeting (agm) in the Davenport Hotel, Dublin, yesterday.
However, a number of shareholders walked out during a heated debate on the motion after managing director, Dr Eamon de Valera, refused to answer questions on his interest in the US-based Irish Press Corporation. He holds a number of Irish Press shares on trust for the Delaware-registered company.
Shareholder Mr Neil Duggan also criticised the board for not getting independent advice on setting a price for the buyback. Chairman Mr Vincent Jennings told the meetings that the directors had "informal" talks with a number of professional advisers.
At the agm itself, shareholders proposed that Mr John Power, a nephew of one of the group's original investors, be elected to the board.
Supporting the proposal, Mr John Brophy, a former press employee, said he would make a big contribution to the board.
Mr Jennings said he opposed the move. "I do not believe that this the best time to be expanding the board," he told the meeting. "The board will have to be expanded if the company is going to go forward and get new business. But at this stage I do not think there is anything to be gained." The motion was comprehensively defeated.
The agm also approved a 15 cent dividend, which will net Dr de Valera almost €70,000. In response to questioning from a shareholder, Mr Michael O'Connor, Dr de Valera said that as he was holding the majority of the shares in trust, he was not the main beneficiary.
The chairman told the meeting that the board was anxious to relaunch the titles.
"The directors are clear that they and the majority of shareholders would welcome an opportunity for the company to invest in any realistic plan to re-launch one or more of the titles," he said.
"Such an investment would not be without serious risk but the directors would recommend that the risk be taken in suitable circumstances."
