UPDATE 4-Independent News says to sell APN stake to cut debt

* To sell APN stake to reduce debt by about $1 bln

* Sees 2009 revenue marginally down in constant currencies

* To share services with other UK publishers to cut costs

* Shares surge as much as 40 percent (Adds comment from second biggest shareholder)

By Andras Gergely

DUBLIN, Oct 31 (Reuters) - Independent News & Media (INME.I) said on Friday it planned to sell its stake in APN News & Media Ltd (APN.AX) to cut its debt by about 800 million euros ($1 billion), sending Independent News shares 40 percent higher.

The publisher of Britain's Independent newspaper (INME.L) said it had received a number of unsolicited expressions of interest for its 39.1 percent stake in the Australasian radio and newspaper group (APN.NZ), adding that it intended to sell.

"The INM Board believes that the significant proceeds receivable from monetising its shareholding in APN would substantially enhance INM's balance sheet and would be earnings neutral for 2009," it said in a statement.

Shares in Independent News were up 26 percent at 1622 GMT at 0.63 euros, below an earlier high of 0.71 euros.