Mumbai, Mar 19 () : Sun TV network shares tumbled by 5% when the news of the DMK pulling out of UPA came out in the media. The shares were trading at Rs 416. The South-based channel is owned by Kalanidhi Maran, nephew of DMK chieftain M Karunanidhi. Ex-Union Minister of Telecom Dayanidhi Maran is the brother of Kalanidhi.
Chennai-based Sun TV Network, one of India’s biggest television networks, has channels in all the four southern languages. Apart from this, the network owns Sun Direct, a DTH service and MSO SCV.
The stock market started with Sun shares at Rs 437 and started to sell around 577,377 shares on both NSE and BSE to hit a low of Rs 408 and slowly rose to Rs 418 after Congress expressed its decision to discuss a resolution over the US-backed resolution in UN on Sri Lanka. This gives room for DMK to change the decision on pulling out.
However, the theory that DMK sensing that Congress is an extra baggage in the coming Lok Sabha polls and the Sri Lanka issue is only a ploy to terminate the alliance.
Sun network’s deal with Maxis, a telecom company based in Malaysia is under CBI scanner. Maxis is the owner of Aircel mobile service which got the licence from Sivasankaran. Sivasankaran complained that his licence was held back by Dayanidhi Maran as minister with the intention to favour Maxis who in turn invested in Sun DTH service.
Kalanidhi is also facing probe on operating a private telephone exchange to defraud the exchequer and favour the channel during the tenure of his brother as telecom minister.
Recently, Sun shares which were on buy rating was downgraded by Citigroup to “neutral” , citing its weaker performance compared with other networks.
With the DMK out of the UPA, the probes on the Marans could take a speedier route.