Shareholders have approved the second tranche of Independent News & Media's €102 million (£80 million) share placing.

A sparsely-attended e.g.m. yesterday approved the placing, with only one shareholder raising objections.

Deputy chairman Mr Liam Healy, standing in for chairman Sir Anthony O'Reilly who shareholders were told was abroad and could not attend, said the company had considered postponing the e.g.m. as a mark of respect to the murdered Sunday World journalist, Mr Martin O'Hagan.

But he said the group decided to go ahead with the meeting since to postpone it "would be giving into terrorism".

After the meeting and in response to a comment from a shareholder, Mr Healy said Independent would give its full support to the family of Mr O'Hagan.

Shareholder Mr Kevin Anderson criticised the proposal to go ahead with the second tranche of the placing, but was told by Mr Healy that the placing and the €2.02 issue price was "irrevocable on both sides".

"There are a lot of shares going on the market at a bad time," said Mr Anderson in a reference to the sharp fall in the Independent share price since the placing was announced in early September.

He also criticised the decision to allow Sir Anthony O'Reilly maintain his shareholding in Independent by subscribing for 27 per cent of the shares being issued in the placing.

"We were strongly advised that for the placing to be a success Sir Anthony should subscribe. Fortunately he did and it copper-fastened the issue. It shows his confidence in the company," Mr Healy said.

He added that the company was advised that a placing - and not a rights issue - was the best method to raise the money and that a rights issue would have meant a much more substantial discount than the 4 per cent discount in the placing.

Sir Anthony and the institutional shareholders are suffering a €24 million fall in the value of the Independent shares they took up in the placing.

Sir Anthony's current paper losses on shares he took up are more than €6 million.