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O’Brien goes to INM head office for first face-to-face meeting with O’Reilly

Sunday, November 30, 2008 By Richard Curran
Telecommunications entrepreneur Denis O’Brien went to Independent News & Media’s (INM) Citywest head office to meet senior executives of the newspaper group last Friday.

It was the first time that a face-to-face meeting had taken place between O’Brien and INM chief operating officer Gavin O’Reilly since the Esat Digifone founder began buying up shares in the O’Reilly-controlled media group in 2006.

It is not clear what was discussed at the meeting, but it was attended by both O’Reilly and O’Brien. The pair walked the floor of the INM printing press at Citywest together afterwards.

A spokesman for O’Brien could not be contacted at the time of going to press, but sources said both men were seen touring the printing presses following the meeting. INM declined to comment. The face-to-face discussion follows over two years of public acrimony, during which time O’Brien has sharply criticised the O’Reilly family’s stewardship of the company and its strategy. He has also voted against the reappointment of key directors at INM agms.

Earlier this year, INM released details of correspondence between both sides which reflected the personal anger that O’Brien felt about coverage of him in Independent titles.

The private meeting at Citywest also follows a major collapse in INM’s share price which has dropped by 80 per cent since last January. INM shares touched a 20-year low last Friday, when they hit 44c before closing at 46c. O’Brien is currently nursing an estimated €400 million loss on his investment in INM, having built up a 25 per cent stake in the company.

Last Friday, INM’s market capitalisation was valued at €385million.O’Brien has spent around €530 million for his stake, valued last week at €96 million.

Tony O’Reilly remains the biggest shareholder in the group, with a 28 per cent stake. INM announced three weeks ago that it had received unsolicited approaches for its 39 per cent stake in Australian newspaper group APN, and it is expected to sell that stake in the coming months.

Last week, INM announced a shared services deal with Associated Press in Britain, which will see its London Independent sharing head office functions and back office services with its rival.

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