Anthony O'Reilly, the majority stakeholder at Independent News & Media, has agreed to relinquish around half of his stake in the company in exchange for banks finding a way to rescue the struggling publisher, Reuters reported Sunday.

The firm's major banks are close to reaching a deal that would provide cash and new shares to IN&M bondholders who are owed US$200 million. The deal reportedly amounts to about half of the equity in the reconstructed company.

If the deal was to be endorsed by O'Reilly it would see his almost 30 percent stake cut in half.

Irish billionaire, and the company's second largest and often disgruntled shareholder, Denis O'Brien, expressed further dissatisfaction with the company, complaining that the proposal, "blatantly disregards the needs of shareholders."

The bondholders are supposedly open to the rescue plan, but a spokesman for IN&M declined to comment to Reuters.

O'Reilly's son, Gavin O'Reilly, is chief operating officer of IN&M, and also president of the World Association of Newspapers' executive committee and board.