IRISH Press Publications (IPP) is threatening to sue one of its shareholders, Independent Newspapers, over remarks made by the Minister for Enterprise and Employment, Mr Bruton.
Independent Newspapers is a 24.9 per cent shareholder in IPP, while Irish Press plc owns 5.1 per cent.
Solicitors for IPP have also written to several other media organisations, including The Irish Times, which carried the report that IPP had decided to put the three Press group titles up for sale.
At the time, Mr Bruton was critical of the time lapse in selling the newspaper titles.
Mr Bruton's remarks followed the IPP board's announcement that it intended to sell the titles. The board includes Dr Eamon de Valera and Mr Vincent Jennings, who are also directors of Irish Press plc.
Mr Jennings said on the night Mr Bruton's comments were made that the board considered them to be defamatory and would be seeking legal advice. It appears the board has now followed through on this. However, it could not be ascertained last night whether the company/board of directors has threatened to sue Mr Bruton.
The involvement of Independent Newspapers in Irish Press was severely criticised by the Competition Authority, which said Independent should be forced to divest its interests.
Independent Newspapers has a loan of £1 million to IPP secured by fixed and floating charges over all "present and future undertakings and assets".
A spokesman for Irish Press declined to say this week whether an extraordinary meeting had been held with Independent to authorise the sale of the titles.
Industry experts question the value of the titles as they have been off the streets for so long.