Indo 'in talks' with German group
15 September 09

The German media giant Axel Springer has held talks with Independent News and Media about becoming a major shareholder in the Irish publishing group.

The talks envisaged the German group underwriting a right issue by the Indo in return for becoming its largest shareholder, according to a weekend report. The report in the Sunday Times says the Germans approached the Irish group, and their approach would have involved diluting the 28pc stake held by Sir Anthony O'Reilly and the 26pc held by Denis O'Brien.

However, the paper says it understands the talks foundered on valuation. Independent News and Media declined to confirm the talks, but said it had received a number of approaches from parties wishing to take a strategic investment in the group. The Dublin-based company added that this was not surprising in the light of its current share price, which did not reflect the value of its business. The Indo's current market valuation is €201m, and if an investment was based on this it would allow an investment of just over €60m before an all-out takeover bid became compulsory.