Apr. 14--TOKYO -- Fuji Television Network Inc. may have to spend some 100 billion yen to end a high-profile battle with Internet services firm Livedoor Co. for control of a radio broadcaster, sources close to the matter said Thursday.
The possible price tag includes buying all 16.4 million Nippon Broadcasting System Inc. shares held by Livedoor. But the two companies may face difficulties before settling the matter as they remain at odds over the amount of money and the parameters of a business tie-up.
If Livedoor, which bought Nippon Broadcasting shares for an average of less than 6,300 yen each, sells them at Thursday's closing price of 5,830 yen, it will incur significant losses.
Livedoor is apparently seeking to sell the shares at profitable price. But that could result in the company being accused of being a "greenmailer," or an entity that buys a large amount of a company's stock in anticipation that the management, fearing the buyer will gain control, will buy it back at a premium over the market price.
If Fuji TV buys Nippon Broadcasting shares above its takeover bid price of 5,950 yen, it may become the target of a shareholder lawsuit.
To avoid such problems, Fuji TV is considering obtaining the shares by buying Livedoor's subsidiary Livedoor Partners, which holds a more than 30 percent stake in the radio broadcaster, the sources said.
Acquiring the Livedoor subsidiary may enable Fuji TV to dodge the criticism as it can expect profits through the new subsidiary in the future.
Meanwhile, if Fuji TV decides to buy new shares to be floated by the Internet firm under a third-party equity allotment scheme, Livedoor will be able to realize its aim of forming a capital alliance with the TV broadcaster.
On the possibility of a business tie-up, Livedoor President Takafumi Horie reiterated that his company wants to draw more customers to its portal site utilizing Fuji TV's brand.
At talks held between Livedoor and Fuji TV, Livedoor appears to have proposed distributing the TV broadcaster's content through Livedoor's website.
But Fuji TV is opposed to the proposal, saying it will face copyright problems if its TV programs are distributed via the Internet, according to a Fuji TV official.
To see more of Kyodo News International, go to http://www.kyodonews.com
Copyright (c) 2005, Kyodo News International, Tokyo
Distributed by Knight Ridder/Tribune Business News.
For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.
TICKER SYMBOL(S): 4676, 4753, NPBXF, 4660
No comments:
Post a Comment