Stockbroker Davy has moved its stock rating of Independent News and Media (INM) to "under review" from "outperform" on the back of an announcement from the Office of the Director of Corporate Enforcement that it is seeking to appoint an inspector.
"Pending further clarification on the appointment of an inspector, we believe it is prudent to move our recommendation to 'Under Review'," Davy analyst Joseph Quinn wrote in a note to clients.
Mr Quinn noted the newspaper publisher’s indication that it is taking legal advice as to whether the court would have sufficient grounds to make the appointment on April 16th. The company itself suggested that if such an appointment was made, it could result in material costs.
The publisher of the Irish Independent and Sunday Independent, among other titles, was notified on March 23rd that the ODCE intended to apply to the High Court for the appointment of an inspector to investigate the affairs of the company.
INM has highlighted that its board and management remain fully focused on the business and ensuring that the day-to-day operations are conducted as normal.