Argentina rejects Grupo Clarin restructuring plan

AP News
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Posted: Oct 08, 2014 11:33 PM

BUENOS AIRES, Argentina (AP) — Argentina's broadcast media regulator on Wednesday rejected a reorganization proposal made by Grupo Clarin to comply with new media ownership laws and the agency said it will seek to break up the conglomerate with its own plan.

The agency in February approved an effort by President Cristina Fernandez's government to force Clarin, which is Latin America's leading media group, to be dismantled into six separate companies.

Martin Sabbatella, head of the Federal Audiovisual Communications Authority, on Wednesday accused Clarin of "flouting the law" with its breakup proposal. She said the body would proceed with the sale through a public auction of some of Clarin's media outlets.

Clarin said in a statement that it will use all means available to defend its own proposal and accused the government of imposing an "arbitrary and illegal" restructuring.

Fernandez's 2009 anti-monopoly media law, which was upheld by Argentina's Supreme Court last year, limits the number of TV and radio licenses that can be controlled by one company.