MINISTER FOR Communications Pat Rabbitte is seeking approval from Cabinet colleagues for a new law on media mergers to go through the Dáil before the summer recess.
This follows businessman Denis O’Brien’s latest acquisition of shares in Independent News and Media (INM), which has taken his stake up to 29.9 per cent.
A complex consumer and competition Bill, due to be published later in the year, was scheduled to update the law on media mergers as part of a much wider reform of company law.
The Bill is the responsibility of Minister for Jobs, Enterprise and Innovation Richard Bruton and aims to give effect to changes in consumer and competition law, including the amalgamation of the National Consumer Agency and the Competition Authority.
But Mr Rabbitte wants to have the sections dealing with media mergers extracted from the large Bill and put through the Dáil and Seanad so that new rules become law by the summer.
The heads of the Bill have already been approved by Cabinet and, according to Government sources, just six or seven of them relate to the media issue.
Mr Rabbitte will need the approval of Cabinet colleagues to take over responsibility for the media elements of the Bill.
He is exploring how the relatively small number of sections relating to the media can be packaged as a separate Bill or incorporated into legislation already on the stocks in his department.
The Minister’s move appears to be a direct response to Mr O’Brien’s acquisition of a further stake in INM, which has prompted speculation that he is on the verge of an outright bid for the company which publishes the Irish Independent, Sunday Independent and Evening Herald.
An increasingly bitter boardroom battle at the company has prompted a legal challenge by Mr O’Brien’s nominees on the board to the money paid to former company chief executive Gavin O’Reilly on his recent departure.
INM’s annual general meeting is scheduled for June 8th, two days after a challenge by a company director, Paul Connolly, against Mr O’Reilly’s €1.87 million payoff is due to be heard in the High Court.
A majority on the INM board is seeking to have Mr Connolly removed at the agm because of this challenge.
Mr O’Brien’s extensive radio interests include Newstalk and Today FM.
