Independent News & Media Regulatory News (INM)

27 Mar 2008 08:24

Independent News & Media PLC27 March 2008 INM QUESTIONS DENIS O'BRIEN'S MOTIVES AND DECLARES HIM A "DISSIDENT SHAREHOLDER" Dublin, 27 March, 2008: This statement follows the announcement earlier today byIndependent News & Media PLC ("INM" or the "Company") of record revenues andearnings for 2007. In recent times, there has been considerable speculation about Mr Denis O'Brienand his intentions with respect to INM. Having taken appropriate advice, the Board of INM believes that Mr O'Brien'scomments and actions regarding INM, its Board, management, strategy andgovernance, are designed to destabilise the Company and run counter to theprinciples of a fair and orderly market for INM's shareholders. Consequently, the Board is now formally declaring Mr O'Brien a "dissidentshareholder", who consistently voices disagreement with the Company's strategywhile continuing to buy shares and who is not acting in the best interests ofall stakeholders. The Company will be responding to, and interacting with, MrO'Brien on that basis henceforth. To date, INM has chosen not to publicly respond to Mr O'Brien's attacks,focusing instead on its strategic priority of building and maintaining theCompany's reputation as one of the world's leading media groups. Theannouncement earlier today of record results by INM further underpins thatreputation. In a letter which appears to reflect Mr O'Brien's possible motives towards INM,he wrote to the Company on 3 July, 2003, alleging that INM had "spent the lastseven years trying to destroy my reputation" and that he was "waiting for theappropriate time to rectify the damage." In the light of this, we believe it isreasonable to question Mr O'Brien's emotive reaction to the legitimate newscoverage that he has received in various Irish INM titles, presumably inrelation to the Moriarty Tribunal. This Tribunal is investigating whether anycorruption occurred in the awarding of a mobile phone licence to Mr O'Brien'scompany Since prematurely disclosing his initial investment in INM in 2006, Mr O'Brienhas made a series of personalised, misleading and inaccurate attacks on theCompany, its Board, management, strategy and governance. While continuing to buy shares in the Company, Mr O'Brien's unilateral andirresponsible attacks have included, among other things, the commissioning andissuance of a so-called "report" purporting to offer expert opinions andinsights into the business and governance of INM. That document, which has been shown to be without merit, was published despitethe fact that neither Mr O'Brien nor the report's author ever spoke to theCompany, its Senior Independent Director, nor any single member of the Company'smanagement team or Board of Directors. In fact, no person connected with INM hasever been consulted about any aspect of this report - which seems whollyinconsistent with the report's stated aims and objectives. INM complies with the principles of the Combined Code and is one of the bestperforming media companies in the world as measured by total shareholderreturns. Yet instead of recognising this, Mr O'Brien's criticisms of theCompany's strategy would appear to be borne out of self-interest, with no properregard whatsoever for the Company, its assets, its stakeholders or the millionsof people who have come to enjoy and respect the Company's many leading mediabrands around the world. INM is confident that its shareholders understand its superior long-term valuecreation and its exemplary track record (20% CAGR return to all shareholderssince 1973). INM will continue to manage and build one of the most admired andconsistently successful media companies in the world. ENDS For further information, please contact: Gavin O'Reilly Chief Operating Officer +353 1 466 3200 Donal Buggy Chief Financial Officer +353 1 466 3200 Media Pat Walsh Murray Consultants (Dublin) Tel: +353 1 498 0300 +353 87 2269345 This information is provided by RNS The company news service from the London Stock Exchange