DR TONY O'Reilly's Australian registered family trust, which has an indirect 22.6 per cent in Wilson & Horton, could make a profit of around £14 million if Independent's bid for the outstanding shares in W&H were accepted.

The original £120 million investment for a 28 per cent stake in W&H in May, 1995, was routed through Independent Press, a 50-50 joint venture between Independent Newspapers and the Kelsal family trust. Subsequent purchases in the market have involved Independent Press paying an additional £50 million to increase its stake in W&H to 45.16 per cent.

Assuming Independent and Kelsal funded the W&H equally then each side of the joint venture would have contributed around £85 million. The NZ$10.50 a share bid by Independent Newspapers values that 45.16 per cent stake at just under £200 million and Kelsal's indirect stake at £99 million.

Independent and Kelsal, whose beneficiaries are Dr Tony O'Reilly's children all Australian citizens also combined to acquire the initial stake in Australian Provincial Newspapers, as Australian media ownership at the time prevented any foreign media group owning more than 25 per cent of an Australian media organisation.

That restriction has since been lifted to 49 per cent, and Independent has been expected for some time to exercise an option to buy out the O'Reilly trust's 20 per cent stake in APN. At current prices, this would cost Independent over £50 million.

Independent director, Mr Brendan Hopkins, said yesterday that a buyout of the Kelsal stake "has not been ruled out".