U.S. Shareholder Urges Fuji Media to Probe Nakai Scandal

New York, Jan. 14 (Jiji Press)--Dalton Investments and an affiliate Tuesday urged Japan's Fuji Media Holdings Inc. to set up a third-party committee of external experts to investigate a reported sex scandal involving television personality Masahiro Nakai.

An employee of Fuji Television Network Inc., the core subsidiary of Fuji Media, is reported to have played a major role in the scandal, over which Nakai has admitted having a problem with a woman. Dalton, known as a U.S. activist investor, and the affiliate together hold about 7 pct of Fuji Media shares.

In the letter to the Fuji Media board dated Tuesday, the Dalton side criticized the media group's handling of the scandal, saying that this "exposes serious flaws" in its corporate governance.

"Any delay or obfuscation in dealing with this matter may lead to a decline in viewer ratings and the defection of sponsors, further damaging shareholder value," the letter said.

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