Dermot Desmond increases Independent News & Media stake

Millionaire financier and investor Dermot Desmond had almost doubled his stake in Independent News & Media . He has bought shares in the company at least three times in the past three weeks and now holds a stake just under the 4% threshold at which he has to update the market. It appears to be Desmond's third acquisition spree this year. According to sources he now holds between a 3.5% and 4% stake in INM, making him the third most significant shareholder after Denis O'Brien and the O'Reilly family. Desmond quietly built up a stake of more than 2% in INM earlier this year and by May his company, IIU Nominees Ltd, was the beneficial owner of more than 11m shares in the newspaper publisher. In August his holding rose to 17.7m shares and resulted in IIU crossing the 3% threshold for declaring a shareholding in a company listed on the Irish Stock Exchange. The media-shy Desmond has never commented on his INM stake but there has been speculation he has been buying at rock bottom prices to establish a position which would deliver a premium share price in the event of a takeover. In a rare statement, the IIU finance director, John Bateson, confirmed at INM's annual general meeting in June that the investment was a value play, at the same time attacking the "shocking" destruction of INM's market value. Shares in the company are trading at about €0.21 compared with a peak of around €27, the price at which O'Brien bought in. Market sources said the volume of shares traded in INM is so low at the moment it is easy to see large transactions but the beneficiary is not always clearly identifiable. Desmond is considered a master of timing and has an eye for undervalued assets. He bought and sold London City Airport for 30 times his original investment and confirmed at INM's annual general meeting in June that he bought into INM for value . • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication". • To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook .