The chairman of Fuji Television Network Inc. said Thursday the TV network will sue Livedoor Co. for compensatory damages in connection with huge losses caused by a plunge in the stock price of the Internet and financial services company.
"We'll make the claim." Hisashi Hieda told a news conference. "No doubt about it."
Fuji TV spent 44 billion yen for 133.74 million Livedoor shares -- at a share price of 329 yen -- last May to end its battle with Livedoor for control of radio broadcaster Nippon Broadcasting System Inc. The investment gave Fuji TV a 12.75 percent stake in Livedoor.
Livedoor stock, traded on the Tokyo Stock Exchange Mothers market for emerging companies, has fallen steeply since the company became mired in an accounting scandal in mid-January. The stock closed at 78 yen.
The TV network is considering selling the Livedoor shares to investors who are willing to help revive the Internet firm, Hieda also said.
By selling the shares, Fuji TV can determine its loss from the investment. The TV network would then move to file the suit, Hieda indicated.
The TSE is expected to delist Livedoor later this month.
Prior to its decision, the Tokyo District Public Prosecutor's Office next week is expected to file more charges against the jailed executives -- former President Takafumi Horie and three other executives, arrested in January, and another executive, arrested in February.
Hieda suggested Fuji TV would take the legal developments into consideration when deciding its moves.
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