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James Murdoch arriving to select Star ally
Bipin Chandran in New Delhi |
September 06, 2003 10:54 IST
James Murdoch, chairman and chief executive of the Hong Kong-based Star Group, is scheduled to visit Mumbai next week to finalise an Indian partner for a 51 per cent stake in its 24-hour news channel, Star News.
During the three-day visit beginning on Tuesday, September 9, Murdoch will meet the Indian businessmen who have shown an interest in picking up a 51 per cent stake in Media Content and Communication Services, a company set up to launch the Star News channel. Among the front-runners for the stake is the Kolkata-based ABP Ltd.
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It is worth noting that Star has up to September 22 to get a dominant Indian partner in MCCS in order to comply with government rules recently laid down which require an Indian shareholder with a stake of at least 51 per cent in any news uplinking venture.
Besides, Murdoch is also expected to meet the existing shareholders of MCCS, Star India sources said.
The present Indian shareholders of MCCS are advertising professional Suhel Seth, who owns a 30 per cent in the company, Merrill Lynch vice chairman Hemendra Kothari with a 25 per cent stake, Hindustan Times editor Vir Sanghvi with a 5 per cent stake, lawyer Raian Karanjiwala with a 4 per cent stake, television personality Maya Alagh with a 5 per cent and actor Jeetendra Kapoor also with a 5 per cent stake.
However, Murdoch is not holding any discussions with the government during his visit and his trip is restricted to Mumbai.
Star's plans to launch the news channels ran into problems with the union information and broadcasting ministry raising objections, citing non-compliance with the news channel up-linking rules in their true sprit. The government subsequently reworked the up-linking norms to make the guidelines more stringent.
Meanwhile, at its meeting on Thursday, the Foreign Investment Promotion Board has asked MCCS to come back with a new proposal, which meets the new FDI norms, for up-linking channels for its consideration.