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NTV owner signs deal with Turner


Gusinsky will sell most of his holding in NTV

By CNN Moscow Bureau Chief Jill Dougherty

MOSCOW, Russia -- The owner of Russia's NTV station has signed the outline of a deal with representatives of CNN founder Ted Turner.

A source told CNN the agreement would mean Vladimir Gusinsky having to sell most of his stock in Russia's only independent network company to the U.S. media mogul.

Turner's representatives will meet later this week in western Europe with financial representatives from Gazprom, a monopoly partially owned by the Russian Government.

Gazprom is also NTV's major creditor. Turner is acting outside of his role as vice chairman of AOL-Time Warner in his dealings with Gusinsky.

The election of NTV's new board on Tuesday will not have any impact on the agreement with Turner, according to the source.

The source said the new general manager of NTV, Boris Jordan, also chosen on Tuesday, would stay in charge of the network only if Turner's representatives walk away from the deal.

"If Turner gets his way, Jordan will be gone," the source said, noting that the deal would give Turner the right to pick NTV's board and management.

NTV's current management called Tuesday's vote by shareholders illegal, and remained at the network overnight with members of the Russian parliament who support the present management.

The election of Jordan, an American, came during an emergency meeting to head the troubled operation.

Jordan, a financial executive, told CNN his appointment as general director of NTV is legal and he intends to assume his position immediately.

The current NTV leadership claims the government is trying to take over the network. Jordan said he will not allow any interference in NTV's editorial policy from the Kremlin.

He said the network is in a financial crisis and his job is to turn it around. Jordan also said he supports international investment in NTV.

A consortium of international investors, lead by Turner, has been in negotiations to buy part of NTV.

NTV's general director has been well-known Russian television journalist Evgeny Kiselyov.

The charge by Kiselyov and the present NTV management team that the emergency stockholders meeting was illegal sets up the possibility of a confrontation over the network's operations.

Jordan said he had been trying to contact Kiselyov to set up direct negotiations but has not yet succeeded.

Jordan, 33, is the head of Sputnik Group, an international finance and management group. He also founded Renaissance Capital Group, and prior to that he was responsible for developing Credit Suisse - First Boston's Russian operations.