Independent News and Media has refused to say whether it will be a bidder for the Belfast Telegraph and the other titles in Northern Ireland when they are offered for sale by Trinity International following a successful Trinity/Mirror merger.
But sources say neither finance nor Independent's domicile in the Republic would be a barrier if the group decided to bid.
"Independent is an acquisitive company and the reality is that it will take a look at the Belfast Tele- graph if and when it is offered for sale," the source, said adding that the newspaper's readership across the unionist-nationalist divide means Independent's domicile in the Republic would not necessarily be a problem.
"The Telegraph has a wider, more eclectic, readership that is more related to income than political leaning. It's nothing like the News Letter or Irish News which appeal to either unionist readers or nationalist readers," he said, adding that Independent has already bought and successfully operated newspaper titles in other politically sensitive areas such as South Africa.
"And the London Independent is hardly a nationalist newspaper," he said.
But industry sources were not so certain of Independent's acceptability as a bidder for the Belfast Telegraph in such a politically charged atmosphere, despite the Northern newspaper's non-aligned stance. "It's still by far the biggest-selling paper in the North, and to have it owned and controlled from Dublin would undoubtedly cause problems," said one analyst. "It's not a simple acquisition, all sorts of factors come into play." Independent was previously associated with a bid for the News Letter if a Trinity/Mirror merger resulted in the forced sale of the unionist-leaning daily. But there were unconfirmed reports that senior UUP members had canvassed against such a move, mainly on the basis that Independent is owned and controlled from the Republic.
Given the size of the Telegraph's 140,000 circulation in the North - a far higher proportion of the overall newspaper readership than the Irish Independent enjoys in the Republic - sources believe that Independent would undoubtedly face continued opposition from unionist politicians if it does become a serious bidder for the Belfast Telegraph.
Finance presents fewer problems, even though Independent is operating with a forecast end 1999 debt/equity ratio of 120 per cent and interest covered 3.5 times by operating profits. But those figures understate its financial strength and do not take account of the increased value of the 50 per cent stake in cable television operator Princes Holdings following the Cablelink sale to NTL and also the impact on the balance sheet of the recent €200 million eurobond issue.
