O’Brien ups ante at INM
IRISH billionaire Denis O’Brien was yesterday accused of trying to push Independent News & Media (INM) into administration so he can snap up its Irish titles in a fire sale.
The charge came on the day that O’Brien – who owns 26 per cent of INM – called for an extraordinary meeting to vote on the disposal of The Independent and The Independent on Sunday.
In addition to the sale of the UK titles, O’Brien wants INM investors to vote to remove Brian Hillery as chairman and to abort the planned disposal of its South African outdoor operation.
O’Brien has been vocal in his frustration at the group’s failure to address its debt, branding INM chief executive Gavin O’Reilly’s proposals for the refinancing of a €200m (£176m) bond as “like putting a band aid on a problem that needs major surgery”. He has urged for more long-term solutions for the business.
But sources close to INM yesterday questioned O’Brien’s motives, suggesting that he was hoping to drive the group into examinership (the Irish equivalent to administration), an option he has previously said should be considered.
“That would leave him in a good position to pick up what is left of the Irish titles”, including The Irish Independent and The Sunday Independent, they said.
O’Brien needs to secure 50 per cent approval for his resolutions at the extraordinary meeting, which will be pencilled into the calendar in the next couple of weeks.
The closure of The Independent would come as a blow to editor Roger Alton and managing director Simon Kelner, who have both been staunch defenders of its place in the market.