Metromedia Fails to Sell Businesses in Georgia

A court in Delaware, the United States, ordered Metromedia International Group, Inc. to hold a shareholder vote on the sale of its assets in Georgia, Reuters reported on November 30.

Metromedia said in October, 2006 that it received an offer on the purchase of of its business interests in Georgia worth USD 480 million from a group comprised of Dubai-based Istithmar, the investment management company Salford Georgia and Emergent Telecom Ventures.

Metromedia planned to finalize deal involving the sale of 50.1% of its shares in the Georgian mobile operator Magticom; 21% of international long distance calling service Telecom Georgia and 26% of Georgian internet access provider Telenet, by early December.

Tbilisi-based Rustavi 2 TV?s business news program reported on December 1 that ?the number of those willing to purchase Metromedia?s business interests in Georgia is declining and there is currently only Salford Georgia remaining ? a company with [media tycoon] Badri Patarkatsishvili behind it.?

A group of Metromedia shareholders sued some directors of the company, demanding that a shareholder vote be held regarding the sale of the holdings in Georgia. The company has already failed to file financial statements several times due to accounting issues.

Defendants included Metromedia director Martin Pompadur, who is also an executive vice-president of Rupert Murdoch’s News Corporation.

Pompadur was in Tbilisi on November 30 to attend the presentation of Luis Robertson as new director general of Imedi media holding (uniting Tbilisi-based TV and radio stations). Robertson was appointed after News Corporation bought shares in Imedi, which is co-owned by Badri Patarkatsishvili.

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