O'Brien to oppose IN&M rule change on disclosure

Businessman Denis O'Brien is set to oppose a resolution to strengthen rules on the disclosure of beneficial interests in Sir Anthony O'Reilly's Independent News & Media (IN&M), in which he now holds an 8.35 per cent stake.

Widely seen as a defensive measure that would empower IN&M to monitor any additional accumulation of shares in the company by Mr O'Brien, the resolution will come before an extraordinary general meeting (egm) next week.

Mr O'Brien's spokesman confirmed his intention to vote against the resolution after he said it was "retrograde" in an interview on RTÉ radio with journalist Vincent Browne.

The interview, dominated by issues related to the Moriarty planning tribunal, was the first occasion in which Mr O'Brien spoke publicly about about IN&M, albeit in limited terms.

Asked about Mr O'Brien's characterisation of the resolution as "retrograde", a spokesman for IN&M said the resolution was a "housekeeping item" consistent with the approach of many other public companies.

"Changes have been proposed in line with good corporate governance and to keep the group in line with other public companies and with the Companies Acts," he said.

While declining to discuss any other aspect of his investment in IN&M, Mr O'Brien said on RTÉ late on Wednesday night that "one interpretation" of the egm resolution was that it was designed to protect the interests of Sir Anthony's family against a hostile bidder such as himself.

The spokesman for Mr O'Brien said yesterday that he was specifically referring to the resolution on beneficial interests, which would empower IN&M to withhold dividends from investors who did not comply with a request for information on the ownership of a holding of shares.

Mr O'Brien said: "I think every shareholder would have a different view on it, but certainly it's probably a retrograde step actually for them to try and do this. And I'm sure many of the international shareholders that own stock in the company will be very, very concerned by that."

Mr O'Brien first took a stake in IN&M in January 2006 and has increased his position three times this year, most recently on Wednesday when he declared his purchase of another 1.05 per cent.

He has never spoken publicly about his ultimate intentions.

IN&M has been buying its own shares, a manoeuvre characterised in the Dublin market as an attempt to prevent Mr O'Brien from adding to his stake.