Shares in Independent News and Media soared in Dublin thoday after Tony O'Reilly said he is standing down as chief executive of the group. He has been a director at INM since 1973.
The move has been welcomed by rival shareholder Denis O'Brien, who said the board room changes will help to position the group strongly in the current financial climate.
Independent News & Media's longtime chief executive and the group's biggest shareholder Anthony O'Reilly, is to stand down on his 73rd birthday in May. His son Gavin will take over as chief executive. He is currently chief operating officer at the company.
INM also said today that the membership of its board will be reduced to 10 from 17. Mr O'Reilly will remain on at INM as President Emeritus. Three O'Reillys will be standing down from the board, Tony O'Reilly Senior and Tony O'Reilly Junior and Cameron O'Reilly.
Following a long battle with rival shareholder Denis O'Brien over the make-up of the board and corporate governance at the group, three new directors will be appointed, nominated by Denis O'Brien.
The three are Leslie Buckley, a founding director of telecommunications firm Digicel, Paul Connolly, chairman of Connolly Corporate Finance and Lucy Gaffney, chairperson of radio group Communicorp.
Denis O'Brien has built up a 25% shareholding in the Independent Group over the last three years. The agreement comes after pressure on Mr O'Reilly and Mr O'Brien from Independent's bankers to resolve their differences ahead of a deadline for repaying a €200m bond.
Commenting on today's announcement, INM Chairman Brian Hillery said that when Mr O'Reilly first invested in a local Irish newspaper operation back in 1973, it had a turnover of €12m. He said he grew the group into a €1.5 billion worldwide communications force.
Denis O'Brien said he believed the changes at INM's board represent the beginning of a new era at Independent News and Media. He said this brings with it challenges which cannot be underestimated, and added that INM operates in an industry which is experiencing rapid change.
'I am confident that these changes will strongly position the group to meet the immediate financing challenges in the current economic climate,' Mr O'Brien added.
INM's chief executive designate, Gavin O'Reilly, said the rivalry between the O'Reilly family and Denis O'Brien was old news.
Speaking on RTE radio, he said the announcement today was a triumph for common sense and a triumph for all the company's shareholders.
INM shares closed up seven cent - almost 67% - at 17 cent in Dublin.
