Turner, Murdoch Vie for Stake in Outspoken Russian Station

Ted Turner, the CNN founder, and Rupert Murdoch, whose media holdings include Sky Global Networks Inc., are vying to buy a stake in Russia’s biggest independent television station, sources familiar with the negotiations told Reuters on Tuesday.

The NTV television station was founded by self-exiled Russian media baron Vladimir Gusinsky--who has run into trouble with the Kremlin over political coverage and fraud allegations--and is part of his Media-Most empire.

Gusinsky has said he wants to sell to a foreign investor a 19% stake in the television station--which is known for its willingness to bash the Kremlin--to protect its editorial independence.

NTV’s sharply critical broadcasts of the Chechen war were considered a turning point for unfettered reporting in Russia.

Last month, Gusinsky ceased to be the majority shareholder in NTV, turning over a large stake to the state-dominated natural gas monopoly, Gazprom, to cancel debts it had guaranteed on his behalf. He now controls 49.5% of NTV and Gazprom 46%. He has pledged an additional 19% stake to Gazprom as collateral for more debts due next year.

Turner’s personal spokeswoman, Maura Donlan, declined to say whether Turner had invested in any Russian television organizations, but said America Online Inc. and Time Warner Inc. definitely had not. Turner is vice chairman of Time Warner, which AOL has proposed to buy.

“This has absolutely nothing to do with AOL-Time Warner-CNN-Turner Broadcasting,” she said.

The battle over the outspoken station has led Washington to say it was concerned Russian authorities appeared to be trying to use the judicial system to throttle dissent.

Russia President Vladimir V. Putin has denied that Russian media is subject to pressure.

Gusinsky is battling the Kremlin on more than one legal front. Last week, a Moscow court revived fraud charges against the businessman, who fled Moscow in spring after spending three days in jail on similar charges.

Media-Most said the ruling was politically motivated and promised to appeal. Gusinsky is fighting extradition from Spain after being arrested on an international warrant and is confined to his villa after being released on $5.5-million bail.

Whether Turner goes through with his offer depends on how Putin reacts to his proposal, said the sources, who declined to be named.

“They [Turner and Gusinsky] agreed virtually with every item. What he [Turner] needs now is a political decision by Vladimir Putin,” one of the sources said.

The Russian president has attacked Gusinsky as an oligarch--someone who got rich quick under the Boris N. Yeltsin regime.

Putin, who appeared to get along with Turner when they met in spring, is expected to give the U.S. media tycoon his decision by the end of January.