CME "NOT INTERESTED IN PURCHASING PRIMA"

"Neither CME, nor CET 21, nor CNTS Nova are now interested in acquiring the second Czech commercial TV station, Prima," Chief Executive of Nova TV Vladimir Zelezny told Czech parliamentary media commission on Wednesday 7th May, Prague-based daily Slovo reported on 9th May.

Zelezny added that "at least one of these three companies" would be able to solve Prima TV's financial problems but it is not going to do so.

According to the Prague "Tyden" weekly magazine of 21st April, 1997, Zelezny had told Czech Parliament on 17th April, 1997 that he was negotiating to purchase the loss-making "Prima TV". Tyden reported that a swap of participation interest between the owners of Prima TV and Nova TV was under negotiation. According to Tyden, the information provoked angry scenes in Czech parliament.

On Wednesday, 7th May, Vladimir Zelezny confirmed to the Czech media commission in parliament that the owner of Prima TV, the Investment and and Postal Bank (IPB), had indeed been asked whether it wanteds to purchase some TV Nova participation interest. According to Zelezny, IPB was "one of six or seven banks to which CME had made this offer". The response, was, however, weak, said Zelezny.

Zelezny said that when CME purchased 22 per cent of CNTS Nova from the Czech Savings Bank in July 1996, thus increasing its ownership of TV Nova to 93,2 per cent, it made a promise that it would sell this participation interest to a Czech owner. If no Czech bank is interested in such a purchase, the participation interest will be offered to the Czech public, added Zelezny.

However the CME 1996 annual report, submitted to the Security and Exchange Commission on 24th March, 1997, does not seem to include promises of such a sell-off. On the contrary, the report emphasises in many places that CME has managed to increase its ownership of Nova TV to 93,2 per cent.

Jan Culik

Glasgow University

9th May, 1997