Concerned shareholders put pressure on the Independent Group

Posted by Mica Swyers on June 18, 2007 at 11:48 AM

Shareholder concerns may mean changes for Independent News & Media in both South Africa and the UK. Examination of CEO and principal shareholder Tony O’Reilly and pressure to sell the UK’s The Independent are both attempts by shareholders to improve stock performance.

In a June 13 meeting, O’Reilly, who owns 26% of Independent News & Media, faced questions by disapproving shareholders as to the effectiveness of his management. Telecoms billionaire, Denis O’Brien, who holds an 8% stake, commissioned a report to examine the level of independence of the governance board, which has come under criticism for being closely linked to O’Reilly. Management changes could have a significant effect on South Africa, where the Independent Group is the largest newspaper owner.

In hopes of improving share price performance, one leading shareholder is pressuring Independent News & Media to see the Independent, which recently was highlighted by Prime Minister Tony Blair in his critique the country’s media. In addition, O’Brien, is encouraging Independent News & Media to sell its Australian radio operations.

Source: Business Day and FinanzNachrichten