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Share prices of Sun TV Network and SpiceJet bounced back on Friday after the Sun group and Mr Kalanithi Maran, the principal stakeholder of SpiceJet, clarified that they had nothing to do with either the 2G scam or the illegal use of BSNL's telephone lines.
The shares of the two companies had plunged on Tuesday after news broke out that the Central Bureau of Investigation might initiate proceedings against the Union Textiles Minister, Mr Dayanidhi Maran, brother of the Sun group promoter, Mr Kalanithi Maran,
While Mr Kalanithi Maran is the Chairman and Managing Director of Sun TV Network, he holds stake in SpiceJet in his personal capacity. CBI's case is that when Mr Dayanidhi Maran was the Telecom Minister, he favoured a company (Maxis) and was paid off in terms of Maxis investing in Sun group company, Sun Direct.
Sun TV and SpiceJet fell 28 per cent and 16 per cent respectively after the news broke out. Today, after the clarification was issued, shares of Sun TV Network bounced 4.17 per cent to Rs 283.35. SpiceJet closed 2.17 per cent higher, at Rs 35.35.
Rebuttal
In the statement issued today, Sun TV Network said that neither the company nor Mr Kalanithi Maran have any relationship with “any of these happenings.”
“We categorically deny the allegation of our usage of 323 lines of BSNL, said to have been routed through the residence of Mr Dayanidhi Maran,” the statement said, alluding to the allegation that the telephones lines were illegally used by Sun.
“We wish to clarify that Mr Dayanidhi Maran does not own any shares either in Sun TV Network Ltd or in Sun Direct TV Private Ltd. We also wish to state that Sun TV Network Ltd does not have shareholding in Sun Direct TV Private Ltd or vice versa. As a broadcaster, in its natural course of business, Sun TV offers its channels to all the DIII players like Dish, Tata Sky including Sun Direct,” the statement said.
Sun TV Network reported consolidated revenues of Rs 2,013 crore for the year 2010-11, on which it made net profit of Rs 769 crore.
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