Third party enters INM fray

Mexican billionaire Carlos Slim has reportedly entered the race for control of Independent News & Media (INM).

A report in a Sunday newspaper today claimed the world's second richest person had taken a 1 per cent stake in the group and was likely to increase it.

Mr Slim's intervention comes as the battle for control of the group intensifies.Telecoms billionaire Denis O'Brien has built up his share in the group to 21.07 per cent, valued at some €369 million while Anthony O'Reilly has a 27.22 per cent worth some €477 million.

Market commentators expect that if O'Brien's build-up of shares continues that he will ultimately mount a bid to take outright control of the firm. 

Mr Slim was recently valued by Forbes magazine at $60 billion, behind Warren Buffett's $62 billion but ahead of Microsoft chairman Bill Gates on $58 billion.

While Mr Slim's Caribbean telecoms company is competing with Denis O'Brien's Digicel for business in the Caribbean and central America, the report in today's edition of The Sunday Times said insiders at INM had insisted that Slim took the stake without their knowledge.

However, he has already featured in the race for control of the media group. In a circular of 18 "questions" for Denis O'Brien in March, INM questioned the value place by Mr O'Brien on Digicel.

INM referred to a  transaction in which Mr Slim acquired a Jamaican company called Oceanic Digital for about $70 million.

Using Oceanic as a benchmark, INM claimed the $290 Mr Carlos paid per subscriber on the deal was significantly lower than the value placed on Mr O'Brien's subscribers in the same region.

"At $290 per subscriber, isn't Digicel only worth approximately $1.7 billion, or approximately $1 billion less than its outstanding debt?" INM asked.