News Corp will maintain stake in INL

By RICHARD BRADDELL

WELLINGTON - Telecom would struggle to reach a 10 per cent target in media group Independent Newspapers, simply because the scrip is too tightly held, according to INL's managing director, Mike Robson.

Mr Robson rejected as nonsense suggestions that controlling shareholder News Corporation would reduce its stake.

On Thursday, Telecom announced it had 5.7 per cent of the company, but that it would be happy with between 5 and 10 per cent.

Reaffirming INL's satisfaction with Telecom as a shareholder, Mr Robson said it had yet to consider whether it would offer a seat on the board, but if Telecom asked, the request would get courteous consideration.

However, Mr Robson said that while the two companies were keen to explore the opportunities provided by using INL's content, there was nothing firm in mind and it would evolve over time.

INL's controlling stake in Sky Television had not been central, Mr Robson said.

Nor did Mr Robson think Telecom's investment signalled a coalescing of telecommunications and media groups into opposing alliances.

Mr Robson said the whole internet and electronic communications were so fast moving that it was unwise to look too far into the future and try to forecast what was going to happen.

"Communications and the media have a disconcerting habit of doing things that are not all that apparent at the time," he said.

"For that reason, most people are trying to position themselves so that no matter what happens they will have a foot in the right camp to progress into the future."