DR Tony O'Reilly's eldest son, Cameron, has been installed at the helm of Australian Provincial Newspapers, the media group controlled by Independent Newspapers and O'Reilly family interests, following the unexpected departure of APN chief executive Mr John Reynolds.

While it was always expected that Mr O'Reilly (31) would even eventually run the company, Mr Reynolds is highly regarded in the industry and his move to newspaper publisher John Fairfax is regarded as a surprise.

An Independent led consortium failed in a bid for Fairfax three years ago, after a consortium headed by Canadian entrepreneur Mr Conrad Black was successful in a rival bid.

Mr Reynolds will become head of Fairfax's important Melbourne subsidiary, David Syme, publishers of the Age newspaper. He was chief executive of APN for the past six years.

Mr O'Reilly said yesterday that he had mixed emotions on the timing of his accession despite his pivotal involvement in the group since joining in 1988 but it was inevitable that Mr Reynolds would go when he was offered the Fairfax position.

Mr O'Reilly said yesterday that he planned to spend more time on the APN's core stable of over 100 regional newspapers. He is credited with APN's successful public listing in 1992 and for a series of acquisitions which have seen the company diversify into specialist magazines, radio and cable television.

Announcing the appointment, APN chairman and Independent chief executive Mr Liam Healy said Mr O'Reilly "has had wide operating experience throughout the company and has been largely responsible for the group's strategic development". He will take up his new post on May 6th.