INM shares gain as company confirms approaches for APN

Shares in Independent News & Media (INM) gained yesterday after the company said it had received approaches for its stake in Australasian business APN News & Media.The company said in a statement that it had received a number of unsolicited expressions of interest in its 39.1pc stake in APN, and that it had informed the group of its intention to sell that stake -- the proceeds of which would be used mainly to reduce INM's debt. The market responded favourably to the news, as it did to an interim trading statement from the company which outlined cost-cutting plans. Shares in INM finished up 28pc and 27pc at 64c in Dublin and London respectively.According to INM, the move to sell the stake in APN News & Media could reduce the company's debt by about €800m, deleveraging the business to less than €600m.The company, which publishes this newspaper and has interests in India and South Africa, has hired Goldman Sachs, in association with ANZ Mergers & Acquisitions, as advisors on any potential deal. APN publishes 23 daily and more than 100 non-daily newspapers across Australia and New Zealand. It also has radio and outdoor advertising assets. Shares in APN were at A$2.35 yesterday, giving the company a market capitalisation of A$1.23bn, while the 52-week high for the stock was A$5.85, valuing the firm at A$2.9bn.In a statement issued yesterday, INM said: "The board of INM believes that APN's current share price does not reflect the inherent value of the underlying assets and the position of APN as a leading media company in Australia and New Zealand. "Moreover, this strategic value has not been fairly reflected in INM's share price, due primarily to the fact that INM doesn't fully control APN's cash flows."Davy Stockbrokers, INM's broker, said in a note yesterday that interest in the company was likely to have come mainly from trade buyers.It added that the main benefit of the sale was that net debt would be substantially reduced. "In summary, we think the APN deal should be a smart one for INM, simplifying and strengthening the business, and clearly beneficial for debt reduction and cash flow."The statement from the company added that the board believed the significant proceeds receivable from monetising its shareholding in APN would substantially enhance INM's balance sheet and would be earnings neutral for 2009. The move would also free cashflow."The board believes that the proceeds could be better utilised for the benefit of all of its shareholders by substantially lowering INM's net debt, with subsequent flexibility to assess other global investment opportunities."INM is 29.5pc owned by Sir Anthony O' Reilly and associated parties. Businessman Denis O'Brien, who owns 26pc of the firm and has been branded a "dissident shareholder", has criticised the plan and said yesterday that the company should be disposing of non-performing UK assets. "I, like all shareholders, shall be watching closely to see what valuation can be achieved for this attractive asset," added.In its interim management statement, INM said it would look at cost savings at its UK business, which includes London's 'Independent' and The 'Independent on Sunday'. The company is exploring "shared-services" plans with other UK publishers. "Total payroll costs across the group are currently under active review," according to the statement. INM's interim management statement also outlined a predictable advertising slowdown, but highlighted the group's resilience. INM said 2008 revenue would probably fall 2pc, excluding currency fluctuations, and would decline marginally in 2009. Advertising revenues would fall 2.5pc this year in constant currencies. "The current volatile nature of global financial and economic markets makes it extremely difficult to reliably forecast for 2009," INM said. There may be "some growth towards the second half of 2009".- Ailish O'Hora Business News Editor Download our iPhone App Now

City's true colours shine as Munster put on a show

A lot has changed in 30 years. Take the ticket prices for starters -- 12,000 lucky souls paid 80p each to see Munster vanquish the mighty All-Blacks at Thomond Park in 1978.The ground, seen as a temple even then, was open and decrepit and the match could be seen from the roofs of the nearby houses in Ballynanty.Corporate hospitality was a bag of chips and if you gave the fella on the gate the nod, he'd probably let you in. But the past is another country.Last night 25,500 fans, clad in all manner of Munster branded hats, coats, jerseys, retro jerseys, tee-shirts and scarves poured into their magnificent steel and concrete cathedral.They gathered in part for an historic sporting occasion, in hope for the right result and in sorrow as they recalled the sickening and untimely ending of a young man's life.New Zealand, the All Blacks, the biggest name in world rugby, were back after 30 years to pay homage to a team which somehow bettered them all those years ago.For a city badly in need of a lift, Limerick last night seized the opportunity with both hands putting on its best face with a show of razzmatazz and glamour.And even though Munster couldn't hang on for another famous victory, the city still had a lot to smile about after the final whistle.There were fireworks, drums, Bono, Michael Flatley, lusty renditions of the 'Fields of Athenry' and an Air Corps helicopter airlifting the matchball directly into the stadium.This was like the Superbowl. Whoever did the choreography, it was masterful. The heroes of '78 flashed up on the screen. Foley, Ward and the rest. The crowd was getting wild.Brian Cowen's face appeared on the big screen. But there were no boos, just warm applause, as the Taoiseach officially opened Thomond. He might be back if this keeps up. Then, quite unexpectedly, there was a bloodcurdling Haka -- from Munster. Thomond was rocking as Munster cheekily stole the thunder from the men in black. Battered by weeks of grim publicity, the Limerick crowd mourned Shane Geoghegan with a one-minute silence and celebrated his life and links with his beloved Garryowen.But the message was clear; the city is not about violence and gunmen and thugs, it's about decent sportsmen, families, civic pride and rugby and that, of course, means Munster.Limerick was up and about itself early yesterday with every business from the chic Leather Store to Sadlier's butchers off O'Connell Street decked out in red flags and bunting.Former Munster hero Peter Clohessy's bar was heaving by 4pm as die-hard fans waited outside Thomond for the gates to open. At 5pm they flooded in to claim their places on the terraces, a full two-and-a-half hours before the game started.In 1978, a tiny handful of the 12,000 crowd would have worn a simple red Munster jersey with the crest of yellow crowns on blue background.Now there's branding and official merchandise. Instead of the '78 game sponsored by Condell's Stationers of Roches Street, now there's Guinness, Toyota and Adidas.With millions of euro at stake and more fans than they can handle, Munster's commercial machine could teach Manchester United a thing or two about generating cash.During the morning, the hordes queued outside the door of the Munster Rugby Store in O'Connell Street.They bought anything with Munster printed on it; silver cuff links (€87.50), coffee travel mugs (€10), a Munster ladies watch (€99) and the baby Munster kit (€45).Everyone, it seemed, wanted the €70 retro shirt, half red, half black with 1978 branded on the back of the collar. A drawing of the victorious '78 team was yours for €450.The young shop staff could barely keep up. "Have you got extra, extra, large?" trilled a large Corkman. "They're all gone," came the reply.Ian Latham from Taranaki in New Zealand had bought the €75 All Black training top. It was blue. "I had to have it," he grinned.His friend David Starke was gobsmacked when he got to Thomond. "Back home they are obsessed with rugby, but by God they show it here."And show it they did. Munster's half time lead of 16-10 had people swooning as Limerick shrugged off its troubles. The city was smiling again, and even a late Kiwi try -- giving victory to the visitors -- didn't take the shine off the occasion. Download our iPhone App Now