PM denies involvement in Matichon takeover bid

Published on September 23, 2005 - Prime Minister Thaksin Shinawatra yesterday rigorously denied his alleged involvement in the Matichon group takeover bid by entertainment tycoon Paiboon Damrongchaitham. “Please don’t drag me into the matter as it is a stupid move for me to buy into Matichon, for political and business reasons,” he said. Thaksin admitted that he knew Paiboon well, but said he had no involvement in his business dealings.

As a politician, he said he was aware that the ownership of one newspaper would be in vain in light of myriad media outlets in the country.

He added that he had stopped devoting his attention to any business dealings after he assumed office as prime minister, noting that he saw no justification for himself to invest in the print media industry.

He was speaking at his weekly press conference, which was dominated by questions on two issues: the media and the southern security situation.

Regarding the acquisition of Matichon shares by Paiboon’s GMM Media, a subsidiary of GMM Grammy, the prime minister said he saw it as a normal transaction for any listed company.

“Shares listed on the stock market are up for grabs and a takeover bid can be prevented if existing owners don’t dilute their equity stake to less than 51 per cent,” he said.

He said hostile takeover bids were unprecedented in Thailand but a common occurrence abroad.

“I heard the Grammy-Matichon deal had a happy ending after the newcomer agreed to sell back shares to the newspaper founder,” he said.

He also criticised Bangkok Post reporters for staging a rally at Government House on Tuesday, saying that they were acting inappropriately by insinuating that he had backed Paiboon to buy a 23-per-cent share in Post Publishing Plc.

He said his government was wrongly perceived as trying to muzzle the free press.

“The country has actually moved from a controlled press to an uncontrolled press, but not a free press,” he said.

A free press could thrive once media professionals establish a credible watchdog of their own to regulate the profession, he said. The present media regulatory body has yet to show its effectiveness.

He urged media professionals to discuss the creation of an effective self-regulatory body, saying his government was ready to support them if the media industry could achieve consensus.

He dismissed speculation that the acquisition of Matichon and the Bangkok Post would lead to domination in news reporting, saying that 80 per cent of the population got their news from television broadcasts, compared to just 12 per cent from newspapers.

He pledged to look into a draft bill to cap the cross-holding of media outlets if industry representatives take the lead in the drafting process.

Commenting on the removal of a Channel 9 talk show, which was regularly critical of the government, he said his administration had no involvement in the matter.

“The management board of Channel 9 was responsible for taking the ‘Muang Thai Rai Sapda’ programme off the air,” he said.

Reacting to Thaksin’s comments, a media professional said the prime minister was speaking like an advocate for Paiboon’s business interests.

“It is not a good signal that the topmost government leader sees no danger to society if a big entertainment conglomerate wants to buy into five newspapers,” said Nation Group editor Thepchai Yong.

Thepchai was a panellist at the forum organised by the Thai Journalists’ Association to brainstorm how to guarantee freedom of the press.

Thaksin’s argument on shareholding was similar to Paiboon’s comments in justifying his acquisition of two newspaper groups, Thepchai said.

“I am concerned that the prime minister mentioned his close relationship with three or four newspapers as if to imply that he could dictate to them,” he said, referring to Thaksin’s claim of ties with top-selling newspapers, Thai Rath, Daily News and Matichon.

He urged the editorial department of each newspaper to send out a clear signal that while they were willing to maintain contact with politicians, they would not bow to their orders.

In order to safeguard a free press, he said media professionals should form an independent panel to monitor news reports. Professional self-regulation would prevent interference in editorial content, he added.

Thepchai also called on media professionals to closely monitor the selection process for seven members of the National Broadcasting Commission, saying that the music industry and four national television stations were on the brink of controlling the airwaves via the appointments.

Piyanart Srivalo, Sathian Wiriyapanpongsa
The Nation