REBEL INDEPENDENT News Media (INM) stakeholder Denis O’Brien warned yesterday that shareholders must be given the opportunity to vote on any refinancing plan that would see their interests diluted.

The newspaper and advertising group is in talks with creditors over the repayment of €1.2 billion that it owes on foot a series of bond issues.

According to reports yesterday, one of the options being considered involves a debt-for-equity deal which would see its creditors getting a stake in the company, with existing shareholders, including Mr O’Brien and his rival, Sir Anthony O’Reilly, having their stakes diluted.

Mr O’Brien said yesterday that the company’s board must not be allowed to take any action which would dilute shareholders’ interest without first presenting them with the restructuring plan.

He added that shareholders, who had “already seen over 90 per cent of their value wiped out”, must have the chance to vote on the company’s future.

“I have today requested an additional resolution to be voted on at an extraordinary general meeting which would ensure that power is returned to shareholders,” Mr O’Brien said in a statement yesterday.

“I will be asking the board to recommend the resolution which would see a sensible solution approved and any attempt to circumnavigate shareholders blocked.”

It was suggested yesterday that the bondholders could get some cash and new shares in INM.

Its bondholders have agreed to an extension, which runs to later this month, on a repayment of €200 million due last May.

The company has also agreed a €98 million sale of its South African outdoor advertising business.

An INM spokesman said yesterday that the focus was to achieve a consensual agreement that was in the best interests of all stakeholders and considerable progress had been made in this regard.

“Consistent with good corporate governance, all matters requiring shareholder approval will be put to shareholders for their consideration,” the spokesman added.