Telecoms and media tycoon Denis O'Brien is set to double his stake in Independent News and Media (IN&M) in a move that will cost him over €130 million, writes Barry O'Halloran
Mr O'Brien has placed an order to buy 5 per cent of the group, which will cost him €135 million at last night's closing price of €3.56 a share.
He already owns 5.06 per cent of the company led by rival Sir Anthony O'Reilly, following two similar raids on the stock early this year and in January, 2006.
That stake cost him in excess of €106 million.
He paid €56.5 million when he bought an initial 3 per cent of the country's biggest newspaper group last year.
He spent a further €50 million upping that to 5 per cent last January and February.
The latest order - for just over 38 million IN&M shares or 5 per cent of the company - was placed with Goodbody Stockbrokers either early yesterday or late on Tuesday.
The firm did not complete the transaction yesterday, and it could not be established if its traders bought any shares on Mr O'Brien's behalf, as Goodbody refused to comment.
Around 2.1 million IN&M shares were traded yesterday in Dublin, and the price jumped six cent or 1.71 per cent to €3.56.
Dealers said the number of shares sold was not unusual, but acknowledged that there were reports in the market that someone was seeking to build a stake in the company.
One source was of the opinion that that party was "someone who might already have been associated with the company".
IN&M is due to pay shareholders a final dividend of 8.3 cent a share, bringing the total to 12.45 cent a share, within the next few weeks.
On the basis of his current holding of 38.6 million shares, the group's total dividend payout to Mr O'Brien for 2006 will be close to €5 million.
The imminent dividend payment has added a premium to the group's price and could possibly make some shareholders less willing to sell.
However, the price did not put Mr O'Brien off on the last two occasions he bought shares in the group, and sources say that it is unlikely to this time.
The biggest institutional shareholder in IN&M is Bank of Ireland Asset Management (BIAM), which holds around 10 per cent of the group.
That is likely to have been one port of call for Mr O'Brien as it has already sold shares to him.
Outside of the O'Reilly family, the other big stakeholders are Marathon and FMR, which each hold 5 per cent.
Mr O'Brien's previous forays into the stock sparked a variety of rumours, including that he is lining up a bid for the company.
The IN&M chief executive led the consortium that foiled Mr O'Brien's attempt to buy Eircom and take it private in 2002.
The deal sparked a bitter rivalry between the two men.
Sir Anthony O'Reilly holds 28 per cent of the group. There is speculation that he may step down this year, after IN&M completes the leveraged buyout of Australian media player, APN, in which it holds a 40 per cent interest.
