O'Reilly to float new media subsidiary

Independent News & Media expects to float its new media subsidiary, iTouch, on the London Exchange this year, shareholders at the group's a.g.m. heard yesterday.

While declining afterwards to reveal when this would happen, the chief executive of the group's South African subsidiary, Mr Ivan Fallon, said the IPO process was proceeding according to plan.

In addition, the group's chairman, Dr Tony O'Reilly, said he hoped for a go-ahead this summer from the competition authorities in Britain and the Republic for Independent's proposed takeover of the Belfast Telegraph. The acquisition would be earnings-enhancing in its first year, he said, although the matter was still sub judice.

Meanwhile, shareholders heard a proxy voter claim that some former Independent Newspapers workers are receiving pensions of only £15-£20 (€19-€25) a week.

Ms Sylvia Meehan, president of the Irish Senior Citizens Parliament, claimed it was a "scandal" that an international company such as Independent News & Media continued to operate a pension scheme which was not index-linked.

In a prepared statement, she added: "Reading the annual report and looking at the profitability of this company, I cannot understand how the board could tolerate a situation whereby some pensioners receive £15 to £20 per week from the company."

An Independent spokesman last night confirmed that 30 pensioners who last worked for the company before the early 1970s had been receiving payments at this rate before last August, after which each had received an additional £10 per week.

Ms Meehan added: "I think this a.g.m. should realise that the industrial relations process has failed to resolve this issue."

But the managing director of Independent's Irish operations, Mr Gavin O'Reilly, said the matter was still under discussion, and the company anticipated that it would reach an agreement.

Dr O'Reilly said he was "very sympathetic" to Ms Meehan's comments, but added that Independent would not enter agreements outside industry norms.

Dr O'Reilly claimed Independent had "the best paid workers in Ireland". He added: "By deduction, we must have the best pensions as well."