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rolonged talks between media groups PT Media Nusantara Citra (MNCN) ' controlled by media mogul Hary Tanoesoedibjo ' and PT Visi Media Asia (VIVA) ' owned by the politically wired Bakrie family ' have collapsed over valuation.

MNCN announced on Monday that it had ended discussions with VIVA over the acquisition of one of the latter's television units, PT Cakrawala Andalas Televisi, commonly known as ANTV.

'Both sides remain far apart on valuation,' MNCN chief executive officer and president director Hary said. 'In the currently uncertain market situation, our priority is to be conservative and to stay disciplined financially.'

He was referring to the stock market, which has been under pressure due to massive sell-offs following concern over the US Federal Reserves' stimulus tapering and poor domestic economic figures such as inflation, current account deficit and tumbling of the rupiah exchange rate.

Hary said the company saw 'better ways to enhance shareholder value through share buybacks' rather than by spending money for acquisitions.

MNCN also said on Monday that it had purchased its own stocks on Aug. 28, 29 and 30. The company bought 8.08 million shares priced at Rp 2,845 (about 26 US cents), bringing total buyback thus far to Rp 22.9 billion. Shares in MNCN closed at Rp 2,775 apiece on Monday, declining 5.93 percent from last Friday.

Apart from MNCN, another conglomerate, CT Corpora ' which is controlled by tycoon Chairul Tanjung ' was previously said to be interested in purchasing VIVA's stake. CT Corpora had retreated earlier over valuations while MNCN continued, but then the deal was for VIVA's subsidiary, ANTV.

In response to the collapse of the talks, VIVA corporate secretary Neil Tobing said it was unnecessary for MNCN to make the announcement. 'The important thing is that VIVA posts the highest performance in the industry.'

VIVA is planning to hold an extraordinary shareholders meeting on Oct. 2 to seek approval to use its assets as collateral to obtain loans.

'It will be a combination of refinancing and getting new loans to support our development. We have big development plans in line, including establishing [a] new studio and developing pay TV called Viva Sky,' Neil said, declining to reveal the exact value of loans the company sought.

'JP/Raras Cahyafitri