Billionaire businessman Denis O'Brien has returned to the market for shares in Sir Anthony O'Reilly's Independent News & Media (IN&M), increasing his stake in the group to a little over 11 per cent.
On Tuesday he separately acquired a 4.3 per cent stake in British recruitment firm Imprint plc, which yesterday recommended a £42.78 million (€61.44 million) offer from recruitment company OPD Group.
Mr O'Brien's renewed purchase of IN&M stock was his first since September, when he took his stake to 10.3 per cent from 9.1 per cent. But his declaration yesterday that he has gone back into the market was not enough to stem further losses in IN&M's share price, which declined 5.9 per cent in a very weak market to close at €2.23.
With IN&M's market capitalisation standing at €1.65 billion last night - down from a high of €2.97 billion as recently as June - senior market observers believe the share price might be approaching a level at which Mr O'Brien would contemplate an all-out bid for the business.
Mr O'Brien has never made his ultimate intentions known, but he has intensified pressure on Sir Anthony this year by publicly questioning the expenses he draws from the group and criticising its corporate governance in strident terms. IN&M has rejected such criticism and accused him of trying to destabilise the group in advance of a bid.
Well-placed market observers said Mr O'Brien's renewed share buying was interesting for other reasons of timing. Some three weeks before New Zealand securities held by Mr O'Brien convert into IN&M stock, his return to the market comes as the Competition Authority finalises its scrutiny this week of his takeover of Today FM.
The imminent maturity of Mr O'Brien's New Zealand cumulative exchangeable preference shares in IN&M - which convertible for IN&M ordinary shares on a one-to-one basis on November 30th - is likely to increase his current stake in the group to more than 12 per cent.
There is no legal requirement on holders of these securities to disclose their interest, so Mr O'Brien will not have to declare his hand until the conversion date.
IN&M is believed to have spent well in excess of €120 million buying back its own shares in recent months to mitigate the dilutive impact of the conversion of the 56 New Zealand securities in issue. Having started to buy back shares at €3.77 each last May, the group bought back another 750,000 shares yesterday in the €2.227-€2.3458 price range. Some 38.22 million IN&M shares are now held in treasury.
The Competition Authority must decide by Saturday whether it will conduct a full investigation into the Today FM deal or allow Mr O'Brien proceed.
After the Broadcasting Commission of Ireland declined to sanction his purchase of its sister station FM104, it is considered increasingly likely by close observers of the deal that the authority will allow the transaction to go ahead on condition that FM104 is not included in it.
Market sources believe Mr O'Brien may have held off buying more IN&M stock during his negotiation with the authority.
