Independent News & Media (IN&M) has bought back another 6.5 million of its own shares, bringing to €83.6 million the amount the firm has spent on its own stock since the start of the year.

The latest purchase means IN&M has now bought back 2.9 per cent of its issued stock, or 22.6 million shares.

As with previous stages in this buyback programme, the group yesterday pointed to an imminent maturity of New Zealand convertible shares as the rationale for the purchase.

These securities can be converted into a maximum of 56 million new shares, an issue that will dilute existing shareholdings in the group unless an equivalent number of shares are bought back.

At this stage, IN&M is about halfway to this 56 million point, which would mean buying back roughly 7 per cent of the shares in issue at the start of this year.

The group has permission from its shareholders to purchase up to 10 per cent of its shares, although the market does not expect the buyback to proceed to this extent.

The New Zealand convertible preference shares were issued in 2003 as part of a restructuring programme within the group. Under the terms of that issue, the securities can be exchanged on a one-for-one basis for Independent stock at the end of November this year.

It emerged late last month that Denis O'Brien, who has built a stake of 8.6 per cent in the company has been accumulating the New Zealand stock too.

IN&M bought back the most recent tranche of its own stock at €3.65 per share. The group closed at €3.57 last night.