Independent Newspapers' chairman Dr Tony O'Reilly has spent over £1.8 exercising options over 1.6 million shares. Dr O'Reilly bought 923,102 shares at an option price of 81 1/2p each, another 256,403 shares at 131p and a further 432,532 shares at 170p each. As a result of the buying, Dr O'Reilly's stake in Independent is now over 27 per cent.

Independent shares were sold heavily on the Irish market yesterday and in early trading they lost 50p to 245p before recovering to close down 25p on the day on 270p. At this level, the shares are at their lowest level since early 1996 and are 47 per cent below their 475p high of early this year.