Archive for September 24th, 2009

Bank funds on horizon for UK daily

September 24, 2009

BRITISH quality paper, The Independent, is losing “tens of millions of Euros a day”, according to its owner Gavin O’Reilly.

But he won’t walk away from the daily or its sister Sunday newspaper, he has told Irish TV.

The Independent was a “central hub” for Independent News and Media’s group of 200 newspapers, said Mr Reilly, who is chief executive of INM.

INM is a 29 percent stakeholder in APN News and Media, which is the largest newspaper publisher in New Zealand and No.3 in the Australian market.

The company is currently in the midst of a protracted negotiation for a new financial structure and is having a battle with director and major shareholder Denis O’Brien, who wants the company to sell of the two Independent newspapers.

The public spat between Mr O’Brien and the INM is different to the battle going on in the Fairfax board room, but it has created a lot of media and general interest in the politics of the company.

The INM share price has fallen some 90 percent in two years.
Mr O’Reilly signalled on Irish broadcaster RTE that it was possible lender banks might invest up to 120 million Euros in the company and become a stakeholder.

He added that Mr O’Brien had initially supported the strategies to carve a future for INM but had seemingly had a change of heart.