News Corp poised for Russia buy
MOSCOW
2000-10-05 00:27:53
News Corporation, the world's No.5 media company, may be about to make its first entry into Russia.
Reports say News Corporation is poised to buy Russia's largest private media group, Media Most.
Kommersant daily cited unnamed sources at OAO Gazprom, Russia's natural gas monopoly and owner of Media Most.
Gazprom, the world's largest gas company by reserves, said it planned to sell the company to News Corp.
But the deal depends on Gazprom winning a Moscow Court case set for next Monday to enforce its takeover of Media Most under a settlement deal since repudiated, the paper said.
A spokeswoman for News in Sydney, Margaret Fearn, would not comment on the Russian report. Representatives in London were unavailable for comment.
Gazprom, itself 38.3 per cent state-owned, denied Media Most's claims Gazprom was acting to tame a media holding the government disliked because the media group criticised President Vladimir Putin, the paper said.
"There is no politics here," said Gazprom chief executive officer Rem Vyakhirev, speaking in New Delhi where he accompanied President Putin on an official visit, the paper reported.
"If they won't pay the money, we will receive shares of Media Most and will sell them to whoever pays the most."
Last month, Russian prosecutors opened a criminal fraud case against Media Most directors after probing Gazprom allegations that Media Most moved assets offshore and relinquished control of NTV, Russia's only privately owned national station.
Dealing with Media Most has been a political hot potato.
United States Secretary of State Madeleine Albright last month warned the Russian president that he risked losing credibility if he let Gazprom take control of Media Most.
"Nobody is going to believe that the Russian government is committed to media freedom if the independent TV is under government control," Ms Albright told the US House International Relations Committee on September 27.
"And make no mistake, Gazprom ownership of TV is government control."
The latest Russian report came after the close of the Australian sharemarket, where News shares fell 42 cents to $24.86 while its preferred stock lost fell 35 cents $21.05.
News, which is 15 per cent of the benchmark All Ordinaries Index, has been reversing a strong run in its price.
The latest fall came on expectations the sharp decline in United States technology and communications stocks would dampen investors' appetite for the initial public offering of News Corp's satellite unit, Sky Global Networks Inc.
BLOOMBERG
This story was found at: theage.com.au |
