Billionaire investor Denis O'Brien has been labelled a dissident shareholder' by Independent News and Media Plc, a company in which he has a 21 per cent stake. - File

Billionaire Denis O'Brien, founder of the Digicel telecoms power-house, has reportedly set sights on a new acquisition but the target company is fighting what it perceives as hostile action and has labeled the Irish billionaire a 'dissident'.

O'Brien is the second largest individual shareholder in Independent News and Media Plc (INM) with 175 million shares or 21.07 per cent, behind INM chief executive officer Sir Anthony O'Reilly who owns 222 million shares - one million units of which were acquired Monday - taking his holdings to 26.75 per cent.

UK media reports continue to speculate that O'Brien is about to launch a bid for INM, given his allegation of cronyism and poor governance by the O'Reilly family which dominates the media group.

The stand-off is already raising concerns here about whether O'Brien would consider selling Digicel to fund INM acquisition.

Speculation

But Digicel Group spokeswoman Maureen Rabbitt dismissed any such suggestion.

"That is pure speculation," she told Wednesday Business.

"Digicel is not for sale. We are committed to further expansion across the Caribbean and Central America."

O'Brien has pumped US$1.9 billion into regional acquisitions under Digicel, expanding the company to 23 countries in seven years.

Said INM in a statement: "The board is now formally declaring Mr O'Brien a dissident shareholder who consistently voices disagree-ment with the company's strategy while continuing to buy shares and who is not acting in the best interests of the all stakeholders. The company will be responding to, and interacting with, Mr O'Brien on that basis henceforth."

O'Brien has not responded to requests for comment on his intentions regarding INM, but otherwise said in a statement issued from his office that the 'dissident shareholder' label was "a highly personal and unwarranted attack on the company's largest independent shareholder and designed to deflect attention away from the company's disappointing stock performance."

At Tuesday's stock market price of €2.12, O'Brien's holdings in INM would be valued at euro371 million (US$595 million).

But the stock has traded as high as €3.90 in the past year, and as low as euro1.56.

"I have always been, and remain, committed to investing for long term value for all shareholders and look forward to seeing signs of a similar approach from the Board of Directors of Independent News and Media," said O'Brien.

Amid the ongoing quarrel, the Irish government on Monday announced that it was setting up an advisory group to review legislation governing media mergers, but denied the plan was connected to the INM issue.

business@gleanerjm.com