The row between Taiwanese snack tycoon Tsai Eng-meng and Payson Cha Mou-sing, two of ATV's largest shareholders, has deepened with the tycoon saying he feels there has been a breach of trust.
The dispute emerged after the two accused each other of 'bad faith' over the investments, following the acquisition by Tsai of a stake in ATV earlier this year.
'I fully trusted him when I first signed the agreement with him,' said Tsai, speaking for the first time to the media in Taipei yesterday about the row.
'And it seems to me now that there could be traps in the deal,' he added.
Tsai, chairman of Want Wang China Holdings, was referring to the issuing of 50 million convertible bonds approved by the ATV board on October 17, for which the selling price was just 28 HK cents each, instead of HK$1.37 in the agreement.
Tsai said he had been asked three times to provide a total of HK$150 million in funding through the issuing of convertible bonds, for which he had to pay HK$1.38 each in line with the agreement.
