Fuji TV likely to get over 30% of radio broadcaster

Fuji Television Network Inc. will likely secure more than 30 percent of Nippon Broadcasting System Inc., its largest shareholder, to prevent Internet service provider Livedoor Co. from intervening in the TV broadcaster's management, an anonymous source said Tuesday.

The source's outlook emerged as other members of the Fujisankei Communications Group and closely tied financial institutions expressed readiness to cooperate with the takeover bid Fuji TV is making for the Tokyo-based radio broadcaster, the source said. Fuji TV has set a goal of acquiring a stake of more than 25 percent.

Both Nippon Broadcasting and Fuji TV are core members of the Fujisankei group of media firms.

But Fuji TV is now seeking to obtain more than 33 percent of Nippon Broadcasting, the source said. That would give the TV broadcaster the power to veto important resolutions, such as mergers, at the radio company's general shareholders meetings.

Fuji TV's tender is intended to prevent Livedoor, which as of Monday held more than 40 percent voting rights in the radio broadcaster, from getting a backdoor foothold in the TV network.

Under the Commercial Code, if Fuji TV gets a stake of at least 25 percent in Nippon Broadcasting, the radio broadcaster will become unable to exercise voting rights through its stake in Fuji TV.

On Monday, Livedoor repeated its proposal for a tieup with Fuji TV, saying it wants to form a "friendly" business alliance. But Fuji TV Chairman Hisashi Hieda rejected Livedoor's proposal again Tuesday, saying, "I do not see the merit" of such an alliance.

Nippon Broadcasting has long been the largest shareholder in Fuji TV.