Sun TV Network dips 4% on worries of state action

Sun TV Network has dipped 4% at Rs 321 on reports that Tamil Nadu Chief Minister J Jayalalithaa will thoroughly examine an unauthorised fibre cable network from union Minister Dayanidhi Maran's house in Chennai to the Sun TV office.

Meanwhile, in its status report on the 2G scam, the Central Bureau of Investigation (CBI) has pointed a finger at Maran, who was the telecom minister from 2004 to 2007, for sitting on Aircel's application for a spectrum license, as a consequence of which it was sold to the Malaysian company Maxis, the Hindustan Times newspaper report suggests.

There are allegations that Maxis Communication bought 74% stake in Aircel and the company was later allotted more circles to operate in.

Maxis Communication, through its subsidiary Astro, then invested around Rs 600 crore in Sun DTH, belonging to the Sun TV Network owned by Maran's family, the report stated.

The stock opened at Rs 310 and hit a low of Rs 305 on the NSE. A combined 1.7 million shares have changed hands on the counter till 1043 hours.