Thu, May 02, 2002 - Page 4 News List

KMT wants new investor for cash-strapped Power TV

By Lin Mei-chun  /  STAFF REPORTER

The KMT said yesterday it would not put any more money in the financially strapped Power TV, but the party is looking for a new investor to take over the station.

If a new investor can be found, both shareholders of the station -- the KMT and the Hsian Shan Group (象山集團) ? will remove themselves from the company, according to KMT spokesperson Wu Ching-ji (吳清基) yesterday.

Although Wu declined to name the possible group that has been in contact with the KMT, reports said I-Mei Foods Corp which owns the Taiwan News, a English daily in Taiwan, is very much interested in the deal.

The reports said that the I-Mei Group is willing to pay NT$250 million to buy the station, but both sides are still in the process of negotiating.

The KMT became a partner in the Power TV station after it invested NT$600 million in January last year. The Hsian Shan Group and the party hold even proportions of the station's stocks.

The investment has proved a poor one however, especially since the station was flooded during Typhoon Nari last September, as a result of which most of its equipment was destroyed.

The KMT is also unhappy with the fact that, regardless of its being a major shareholder, it does not have any management rights, on top of which it is unhappy with the station's strong pro-PFP stance in its news coverage.

For the past six months, the relationship between the KMT and Chiang Tao-sheng (江道生), the Hsian Shan Group's president has been strained as Chiang has repeatedly accused the party of dodging its financial responsibility.

Chiang again accused the KMT yesterday of failing to meet its financial obligations, as a result of which a check for NT 5.16 million bounced on Tuesday.

He said after the KMT's join the venture in January 2001, he had put an extra NT$350 million into the station, while the KMT had given nothing extra.

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