Independent Newspapers has moved to within a whisker of compulsorily buying out the minority shareholders in New Zealand newspaper group Wilson & Horton after spending £21 million increasing its stake in the group from 85.5 per cent to 89.9 per cent.

Independent stopped short of going over the 90 per cent level that would have resulted in compulsory acquisition of the remaining shares. Analysts believe, however, that it is only a matter of time before Independent mops up the remainder of the shares and takes full control. Independent has taken full advantage of the recent weakness in the Wilson & Horton share price - down from NZ$12 (£5.11) to NZ$9.70 - and of the willingness of one institution, the Australian group AMP, to break ranks with other institutional investors and sell the bulk of its five million shares to Independent at NZ$11 each.

That is the same as the takeover price rejected by the institutions 18 months ago, when AMP took a particularly strong stand and pressed for a price of more than $13 a share. While Wilson & Horton shares moved ahead slightly after the latest buying by Independent, the remaining institutional investors are in a weak position to force a higher price now.

All Independent needs to be able to compulsorily buy out the minority shareholders is another 90,000 shares. Significantly, the deal between Independent and AMP left the Australian fund manager with exactly that number of shares.