Nation Group and Thaksin in running
Cholada Ingsrisawang and Nataya Chetchotiros.
The two major shareholders of iTV Plc, operator of the iTV television channel, are engaged in a new conflict for control of the independent station.
The struggle pits a group led by Siam Commercial Bank against the Nation Multimedia Group.
The battle for control of the company began as iTV is in the process of recapitalising to 2.4 billion baht from 400 million baht to raise funds to pay concession fees to the government.
According to a highly-placed source at the Siam Commercial Bank, the bank and the Crown Property Bureau, which together hold 20% of the shares in iTV, are changing their investment policies. The SCB, which recently obtained tier-1 capital from the Finance Ministry - a 40% shareholder of the bank - was instructed by the ministry to consolidate by concentrating only on its core business.
Meanwhile, the Crown Property Bureau is also changing its investment portfolio and the media business is no longer one of its primary interests.
Therefore, they intend not to acquire new shares of iTV and they want Thaksin Shinawatra to take up the new equity on their behalf, said the source at the bank.
At the same time, the Nation Multimedia Group also wants to increase its holding in iTV from the current 10%. The company was successful in convincing the cabinet to allow it to amend its terms of reference.
When awarding the independent television concession to the private sector, the government set a condition disallowing any shareholder group in the firm from holding more than 10%. This was to prevent any group from dominating the company, to ensure it would remain independent. However, the condition, with the approval of the cabinet on Tuesday, has been terminated.
An informed source on iTV's board said that Suthichai Yoon, the editor-in-chief of the Nation Group and also a director of iTV, told the board meeting on Jan 26 that he had approached a Singapore-based telecom giant to be a strategic partner of iTV. Mr Suthichai's statement stunned other directors and many of them asked Mr Suthichai to disclose the Singaporean firm, but Mr Suthichai refused to do so.
The Nation newspaper yesterday quoted an informed source at Siam Commercial Bank as saying that Mr Thaksin had planned to take over iTV. However, informed sources in SCB believed that the report was leaked by The Nation side.
"Mr Thaksin aspires to become the next prime minister of the country, and so he is trying to build up his own image as a businessman. Any new link to business might affect his way to the premiership," an SCB source speculated.
Mr Suthichai was not available yesterday as he has been in Cambodia, but Mr Thaksin, leader of Thai Rak Thai Party, when asked by the Bangkok Post, said that he was really interested in iTV.
"The company's share price is very attractive, and I am interested in acquiring them," Mr Thaksin said. However, Mr Thaksin denied that he had been approached to acquire iTV shares. "Nobody has approached me although I am interested."SCB sources said the bank and the Crown Property Bureau in fact did not object to selling shares to the Nation Group. They wanted only a fair price.
Some shareholders were not happy with Mr Suthichai's move in pressuring the company, according to insiders.
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THE winds of change blow fast at ITV these days it seems, and now is the time for those in the entertainment and investment banking sectors to stay tuned in to the latest developments at ITV, Manager Daily advised, in an analysis piece. It all started when the government extended a loan payment deadline for ITV for the return of 800 million baht it owes in concession fees. Despite the extension, ITV still has to pay. Nation Multimedia, a major shareholder and content provider to ITV, took the initiative in locating for a new partner for ITV who could bring in fresh capital. Rumor also has it that Siam Commercial Bank, a major shareholder of ITV, would like to sell out completely. The best Nation Multimedia could do was to come up with a potential Singaporean partner to which the government said no. Finally, another rumor has it that Thaksin Shinawatra might be interested.
Then the head honcho at Nation Multimedia, Suthichai Yoon, a highly respected journalist who helped built the media group, says he will, after deliberation, announce his intentions within a few days whether or not to say good bye to ITV.
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NATION Multimedia Group chief, Suthichai Yoon, says he will fight to keep ITV in the hands of the Thai public and to make sure certain politicians, namely Thaksin Shinawatra, are kept out, Manager Daily reported, quoting Suthichai Yoon. Nation Multimedia is a big shareholder in ITV and a major content provider to the television station. ITV is harried by debts, concession fees and capital increase plans gone haywire.
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Post Reporters
Shin Corporation has taken a major stake in iTV, the country's first independent television station, giving the telecom giant a major share in the local media market.
An informed source said a memorandum of understanding was signed last month between Shin Corporation chief executive Boonklee Plangsiri and Siam Commercial Bank president Vichit Surapongchai.
Under iTV's debt restructuring plan, Siam Commercial Bank will swap some 3.8 billion baht for equity in the station.
Shin Corporation will obtain more than a 40% stake of the new equity held by SCB. The bank is still negotiating with several other potential investors over the remainder, sources said.
PricewaterhouseCoopers is conducting a due diligence of iTV and is expected to finish in a matter of weeks, he said.
The source also said the iTV deal was a private agreement between Shin Corporation and SCB and that other shareholders would be notified later.
It was not known what percentage Shin Corporation would hold in iTV after the deal, but the source said all shareholdings would be diluted after the recapitalisation. The source said the Nation Multimedia Group had not yet talked with Shin Corporation about whether its news team would return to iTV. He said the role of Thaksin Shinawatra's telecom conglomerate in iTV should be closely monitored because of the Thai Rak Thai leader's intention of becoming the next prime minister.
"We fear that Thaksin will dominate the television station and then exploit it for political gain," he said.
Since iTV was an independent television station which emerged from the "Black May" crackdown, society should closely monitor developments at the station.
Earlier, Suthichai Yoon, Nation Group editor-in-chief, blasted Siam Commercial Bank, iTV's major creditor and also the station's shareholder, for pressing for policies that would jeopardise the station's editorial independence.
Other disputes have emerged over plans to revamp the station's programming policies, with entertainment shows moving into more favourable time spots to maximise ad revenue.
Siam Commercial Bank has so far helped iTV creditors to restructure more than four billion baht in debt, a figure equivalent to the station's total assets.
ITV's debt restructuring is expected to be completed later this month.
Apart from Shin Corp, three other groups have submitted bids for a share in iTV - Merrill Lynch, Lombard and Broadcast Network Thailand. BNT, owned by Itthivat Bhiraleus, earlier this year took over Onpa International, a listed producer of blank audio tapes and compact discs.
Analysts said a tie-in between Shin Corp and iTV would give the telecom giant a foothold in the television market, complementing its operations in the Internet and telecommunications.
The deal will definitely give Shin advantages in the medium-term, offering them a fully-integrated platform to market services.
"Everyone wants to enter television, but outside of iTV, there aren't a lot of opportunities. This will give Shin a foothold in the market at a much cheaper price than if they were to bid for a concession directly," said Jitra Amorntham, an analyst at Capital Nomura Securities.
Prakit Pradepasen, iTV chairman, denied knowledge of the transaction.
He said the company's directors would consider iTV's overall restructuring plan at a meeting arranged for later this month.
"There won't be any major changes, even with new investors. SCB will remain a major shareholder," Mr Prakit said, although some board changes could be possible.
Under iTV's licensing agreement, the station must maintain programming at 70% news and 30% entertainment.
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BANGKOK, Thailand (AP) - In the latest skirmish in a fierce battle over editorial control, staff of Thailand's ITV television network said Tuesday they would issue a protest to the country's profession journalists association over the transfer of their news director to an inactive post.
The station's editorial staff claimed that moving Thepchai Yong to the post of adviser to the ITV president was unconstitutional, infringing on his freedom of speech because it was meant to punish him for speaking out about ownership changes at the station.
Their plan to protest to the Thai Journalist Association was reported on ITV's evening broadcast.
Thepchai had opposed the sale of a controlling stake of ITV to Shin Corp., a Thai telecommunications conglomerate.
Shin Corp. is owned and ultimately controlled by Thaksin Shinawatra, the founder of a new political party and a credible contender to become prime minister.
Thepchai and other critics contended the sale jeopardized the political independence of the news-oriented station, which was founded by a consortium of companies each holding ten percent shares.
The fight against the sale was led by The Nation group, an ITV shareholder and publisher of Thai and English-language daily newspapers. Thepchai was formerly editor of its English language daily The Nation. He is also the younger brother of the Nation group's founder and editor-in-chief, Suthichai Yoon.
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BANGKOK POST (BUSINESS SECTION) PAGE B1BROADCASTINGThird iTV director in less than one year submits resignationNation Group rejoins `to build synergy'Suphaphan Plengmaneepun and Nondhanada IntarakomalyasutLess than one month after a shake-up of its top management, iTV Plc is undertaking another major change that will result in the resignation of its third station director in less than a year.
The change will result in a reunion between Shin Corporations, the station's majority shareholder, and the Nation Multimedia group, which pulled out of iTV five months ago.
At the time, the Nation Group said it was quitting iTV because it feared the station's editorial independence would be compromised by its relationship with Shin, founded by tycoon Thaksin Shinawatra, leader of the Thai Rak Thai Party and widely tipped to win the Jan 6 general election.
Suphab Khleekhajai, the station director, said yesterday afternoon that he was going to resign shortly.
But at an evening news conference, Piya Malakul na Ayutthaya, the company's vice-chairman who oversees news policy, said that Mr Suphab had already resigned.
Both men gave conflicting reasons for the resignation.
Mr Suphab said he wanted to quit as he could not continue working at iTV "without dignity", but Mr Piya said Mr Suphab was leaving because he could not get along with the Nation Group.
Atcha Suwannapakpraek, iTV's executive director, will replace Mr Suphab as the station director, a position he last held five months ago.
Shin Corp acquired a 39% stake in iTV in May, and said it intended to eventually increase its holding to 70% in the country's first independent television station.
After the acquisition, the Nation Group which had played a significant role in developing iTV's news coverage strategy and programming, was forced to pull out.
Thepchai Yong, a former editor of The Nation newspaper, was suspended as station director and moved to an inactive advisory post. Mr Atcha was then named acting station director.
The station subsequently appointed Somkiat Onvimol, a pioneering TV broadcaster, to take control of the station's news direction. However, Mr Somkiat left after a month, saying his new duties as an elected senator would take all of his time. He was succeeded as station director by Mr Suphab.
Last month, Shin appointed Sanchai Thiewprasertkul, a senior executive of its mobile-phone unit, Advanced Info Service Plc, as president of iTV, replacing Saranthorn Chutima.
The most powerful person at the station, however, is now Mr Piya, who is also chairman of the Pacific News Group, whose flagship business is the popular Jor Sor 100 radio station.
Mr Piya said yesterday that iTV had agreed to build "synergy" with the Nation Group, which has focused on developing Nation Channel 8 on the United Broadcasting Corp pay-TV service since it pulled out of iTV.
For now, he said, the co-operation would extend only through the coming election period. "Our relationship after that will be discussed later."All election coverage by iTV and the Nation Channel would be exactly the same, Mr Piya said.
Also joining the election-coverage plan would be Daily News, the second largest circulation Thai-language newspaper and also a shareholder of iTV, Jor Sor 100 and Pacific News Network, Mr Piya said.
All coverage will be under the direct supervision of Suthichai Yoon, editor-in-chief of the Nation Group and its most highly visible television personality.
Mr Suthichai's associates at iTV are also being promoted. Korkhet Chantalertlak becomes news programme director, Kitti Singhapat will be news director and Jira Hongsamrerng the executive editor.
A Shin Corp executive who asked not to be named said that his company had not been involved in the latest shake-up. "It gave a free hand to Mr Piya," he said.
He said that Shin would not object to the Nation's return to the station, though it was not completely happy with the decision.
Mr Suphab, meanwhile, said he hoped the change would not affect the lower-level staff who had been caught up in what he termed a power play.
He said the major problem of iTV was the public perception that Mr Thaksin controlled the station.
"It's the job of iTV's management to change this image," he said.
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BANGKOK (AP)--Thai journalists continued to lambast the government of Prime Minister Thaksin Shinawatra Wednesday for trying to muzzle one of Asia's freest presses.
The Thai Broadcast Journalists Association demanded that government agencies "immediately stop acts of harassment and interference in press freedom" and a veteran journalist said Thaksin's aides are "undertaking a vigorous campaign to ensure remarks not favorable to him are pre-empted or taken off radio and television programs."
The comments were in response to recent government moves against media outlets critical of a Constitutional Court decision to drop corruption charges against Thaksin.
Monday, the police department's Special Branch sent a letter to the Thai business daily Krungthep Turakij calling its decision to print a foreign news agency report about the court case as "irresponsible" and a threat to stability.
The published report said seven of the Constitutional Court's 15 judges had said Thaksin was likely to be banned from politics for 16 months if the court found him guilty of concealing assets. The court acquitted Thaksin 8-7 Friday.
The Thai Journalists Association and the Thai Broadcast Journalists Association issued statements Tuesday condemning the police warning.
The broadcasters group also protested police warnings to a radio station which had reported on the Thaksin case. "Such an action clearly contradicts the right to speak and write freely as stated in the Constitution," the group said.
Most radio stations and all but one of Thailand's six broadcast television channels are state-owned. The lone private television station, ITV, is partially owned by Shin Corp., a holding company controlled by Thaksin's family. The company has been accused of editorial interference in the station's news coverage.
"The private mass media has come under similar, if more subtle manipulation by the prime minister's aides," wrote Suthichai Yoon in an editorial in The Nation. Suthichai is the newspaper's editor-in-chief and a leading television news commentator.
The editorial said many Thais had died fighting in the struggle for democracy but that the clampdown on freedom of expression has again "reared its ugly head."
"The warning from the Special Branch was indeed an eye-opener. It tells you that as far as the branch's press officer is concerned, Prime Minister Thaksin and national security are one and the same thing.
"The press officer's argument suggests that any newspaper that runs a story that upsets the PM is disturbing national progress," the editorial said.
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BANGKOK - Journalists critical of the Thaksin government are being probed for money laundering.
The move has raised the question of whether the administration is abusing state power to silence its critics.
The Nation Multimedia Group said the government ordered on Wednesday a probe into the assets of 33 people, including Nation staff, those of the Thai Post and Naew Na newspapers, and some members of the opposition Democrat Party.
The names of Nation editor-in-chief Suthichai Yoon and editor Thepchai Yong as well as their children and wives were among those on a list circulated to all local commercial banks.
The banks have been asked by the Anti-Money Laundering Office (Amlo) to examine their accounts.
Others on the list include Nation senior editor Sopon Onkgara, Thai Post columnist Roj Ngamman and his family members, and Mr Amporn Pimpipat, another Thai Post columnist.
That the list is mostly made up of media companies and journalists who have been critical of the government prompted concerns on Wednesday as to whether Amlo was being used as a political tool to intimidate government critics.
The Nation group said yesterday it would seek a court order to halt the investigation into the finances of its top executives.
Media academics and human rights groups have slammed the government's move, with some comparing it to the Watergate scandal that brought down US president Richard Nixon. - TheNation/Asia News Network.
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BANGKOK, March 9 (Reuters) - Thai Prime Minister Thaksin Shinawatra, heavily criticised by the local media over reports of of official probes into the assets of journalists and their firms, denied on Saturday making any such "insane" order.
Thaksin said in a weekly radio address that his daily schedule was so busy he did not have time for "nonsense" matters - or even a bathroom break.
"I am not that insane to make such a nonsense order to interfere in the media coverage, which would have been worse off for the government," Thaksin said in the 40-minute impromptu radio speech.
"My daily schedule has been so tight that I don't have time to think about these ideas, or even go to toilet, or watch TV."
A war of words between the government and the press intensified last week with a claim by newspaper editors that the government was using dirty tricks to discredit its opponents.
The group editor of the independent Nation Multimedia Group said on Thursday the financial assets of some of its journalists had been subject to a secret government probe.
Nation Multimedia Group editor-in-chief Suthichai Yoon said the alleged probe was an intimidation tactic and he had asked the Administrative Court to order an immediate ban on this probe.
Relations between the media and the Thai government have soured since Thaksin, a multimillionaire telecoms tycoon with a reputation for detesting criticism, took office.
WANING POPULARITY
Thaksin, who came to power in a landslide election victory a year ago, has an absolute majority in parliament but opinion polls suggest his popularity may be waning.
With pressure mounting from media and rights watchdogs, Thailand on Thursday reinstated the revoked visas of two foreign journalists accused of threatening national security, after their magazine made an apology.
The pair, American Shawn Crispin, 33, and Briton Rodney Tasker, 56, worked in Bangkok for the Hong Kong-based Far Eastern Economic Review (FEER), owned by U.S. publisher Dow Jones & Co.
The Review apologised on Monday to the Thai parliament for misunderstandings caused by a story in the January 10 edition deemed by police to be offensive to the Thai monarchy and banned in Thailand.
The article touched on relations between Thaksin and King Bhumibol Adulyadej, as well as Thaksin's business interests. Thailand has strict laws on what can be written or said about the monarchy.
The Administrative Court, which rules on the legality of executive branch orders and legislation, said on Saturday it would meet next week to decide whether to pursue the Nation's petition.
"If we agree to pursue the case, we will invite both parties and banks that were asked to check on the journalists' accounts for investigation next week," Vorapot Visrutpitch, head of the Central Administrative Court told reporters.
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