CHINA Media Capital is reportedly in talks to take over a controlling stake in Hong Kong-based Television Broadcasts (TVB) Limited.

Hong Kong's biggest free-to-air TV channel said in a statement to the Hong Kong Stock Exchange that Shaw Holdings, the controlling shareholder of Shaw Brothers Ltd which owns 26 percent in the broadcaster, is in "preliminary discussion for a possible share sale" but no agreement has been reached.

CMC, the country's first private equity fund focusing on media investment, last month said it will buy a controlling stake in three Chinese TV channels and a movie library content owned by News Corp.

It is backed by Shanghai Media Group, China Development Bank and China Broadband Capital as well as Wenhui-Xinmin United Press Group.

Other domestic media reported that SMG made an offer of HK$10 billion to TVB managing director Mona Fong Yat-wah, the wife of Run Run Shaw who owns Shaw Holdings. But Hong Kong's South China Morning Post cited an unnamed source close to the talks that the acquisition should be made via CMC.

An official with SMG told Shanghai Daily yesterday that it isn't likely to be the bidder itself, refusing to comment further. A CMC spokeswoman yesterday declined to comment on the reports.

Henderson Land Development Co confirmed earlier this week that Vice Chairman Lee Ka-kit is studying to take over the stake. Earlier reports said Lee may pay over HK$9 billion (US$1.2 billion) to acquire control of TVB.