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Maxs (161) Predre
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051204
MDLIAN 7236
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FM BTC HONG KONG TO PRIORITY FCO TELNO 244
OF 130905Z SEPTEMBER 93
INFO ROUTINE DTI, PEKING
(AMENDED DISTRIBUTION 15/9/93)
HKB 301/1
2 SEP 1993
SOUTH CHINA MORNING POST SCMP PUBLISHING GROUP)
OP COPY Q DIST?
RUPERT MURDOCH'S NEWS CORPORATION HAS SOLD 34.9 PER CENT OF ITS 50 PER CENT HOLDING IN THE SCMP PUBLISHING GROUP, TO KERRY MEDIA LTD, PART OF ROBERT KUOK'S HONG KONG BASED KERRY GROUP. THE DEAL, WORTH USD350 MILLION, WAS SIGNED ON 12 SEPTEMBER ENDING A WEEK OF SPECULATION FOLLOWING SUSPENSION OF THE SCMP'S SHARES ON THE HK STOCK EXCHANGE. KUOK IS NOW THE LARGEST SHAREHOLDER FOLLOWED BY NEWS CORP WITH 15.1 PER CENT. THE SCMP GROUP INCLUDES THE SUNDAY POST AND THE CHINESE LANGUAGE DAILY WAH KIU YAT PO.
ATTENTION WILL NOW BE FOCUSED ON MR KUOK. HE WAS BORN IN CHINA (NOW A MALAYSIAN CITIZEN) AND HAS BUSINESS INTERESTS THROUGHOUT THE REGION, PARTICULARLY IN CHINA. HE HAS A 32 PER CENT STAKE IN HONG KONG'S LEADING TV STATION, TVB.
SPECULATION THAT THE SCMP WILL, UNDER KUOK'S INFLUENCE, LEAN TOWARDS CHINA IN ITS EDITORIAL POLICY HAS BEEN REINFORCED BY PRESS REPORTS OF NEW CHINA NEWS AGENCY AND BANK OF CHINA INVOLVEMENT IN THE DEAL. THE HONG KONG JOURNALISTS ASSOCIATION HAVE EXPRESSED CONCERN OVER THE FUTURE OF THE QUOTE INDEPENDENCE UNQUOTE OF THE PAPERS IN THE GROUP. WHAT HAPPENS TO THE EDITORSHIP OF THE SCMP WILL BE A KEY POINTER TO THE FUTURE. CURRENT EDITOR, DAVID ARMSTRONG WHO WAS APPOINTED BY MURDOCH IN APRIL THIS YEAR, SEEMS UNLIKELY TO SURVIVE.
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