Independent News CEO O'Reilly ups stake to 27.5 pct

DUBLIN, April 11 (Reuters) - Independent News & Media (INME.I: Quote, Profile, Research) Chief Executive Anthony O'Reilly has bought another 2 million shares in the newspaper publisher, taking his stake to 27.46 percent, the company said in a statement on Friday.

O'Reilly had bought the shares at just over 2.11 euros ($3.34) each, taking his holding to almost 226.2 million shares, the owner of Britain's Independent newspaper, the Irish Independent and the Belfast Telegraph said.

The buy extends O'Reilly's lead over Irish telecoms billionaire Denis O'Brien who has been building his holding and owns 21.07 percent after Independent News last month issued 39 million shares to fund a South African acquisition.

In March Independent News branded O'Brien a dissident shareholder, pointing to his criticism of management standards at the newspaper group.

O'Reilly's son, Chief Operating Officer Gavin O'Reilly, has accused O'Brien of having a "persecution complex" over the group's past coverage of his business affairs. O'Brien has described the company's actions as an "unwarranted attack" and says he is looking for longterm value from his investment.

The tiff between two of Ireland's best known and wealthiest businessmen has led to media reports that O'Brien may launch a takeover bid for Independent News (INME.L: Quote, Profile, Research) although the market has largely discounted the likelihood given O'Reilly has enough shares to block any offer.

Shares in the group have almost halved since the middle of last year and closed 0.5 percent lower at 2.10 euros in Dublin on Friday. (Reporting by Paul Hoskins; Editing by Mike Elliott)