INM chief hands company over to son

Posted by Emily Dilling on March 13, 2009 at 4:57 AM

Sir Anthony O'Reilly, chief executive of Independent News & Media, announced he will hand over control of the company to his son, Gavin, Reuters reported Friday.

Gavin O'Reilly, also president of the World Association of Newspapers' executive committee and board, will take over a company with debt of €1.4 billion, of which a €200 million bond is due in May. Despite the 96 percent rise in shares to 20 cents following the announcement, INM still plans on restructuring, projecting a reduction of its board members to 10 from 17.

The company also faces pressure to resolve a conflict with "dissident" shareholder Denis O'Brien, who holds a 26 percent stake in INM, according to Reuters. O'Brien said in a statement that the changes bring a new era with challenges that "cannot be underestimated."

The future of the company's titles, including The London Independent, is uncertain. Gavin O'Reilly declined to comment on whether the paper, which has already seen job cuts, would be sold. "Our focus is ensuring all the assets that we manage make a contribution," he told Reuters.

INM is hoping to find a buyer for its Australasian radio and newspaper group APN News & Media, with a view to cut debt by an estimated €800 million euro.

Anthony O'Reilly, INM's biggest shareholder with a 28.5 percent stake in the company, will officially retire on his 73rd birthday in May, but Gavin O'Reilly will take over as chief executive designate immediately.

According to the Irish Independent, Anthony O'Reilly had this to say of his time at INM: "Together we have expanded this Irish newspaper group and enshrined a fiercely independent editorial policy that is widely respected across the world. As the largest shareholder, I will continue to support their legacy and this wonderful Group in the furtherance of its strategy."