The battle between the rival shareholders resumed yesterday after Tsai failed last month to get a temporary court order to bar Wang from gaining a controlling stake in the local broadcaster.

Tsai's lawyer told the High Court the sale will hurt Tsai's interests as Payson Cha Mou- sing and his brother Johnson Cha Mou-daid had gone back on an earlier agreement not to sell their shares to anyone without Tsai's approval. "The letter of intent, signed by both parties in May last year, clearly stated that the Cha brothers would transfer 2percent of ATV to Tsai within five years, making him the largest shareholder," his lawyer said in an opening statement.

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Tsai now controls all non-voting shares and 49 percent of the voting shares of Antenna, which holds 47.58 percent of ATV.

The tycoon became a substantial shareholder in the financially troubled broadcaster last year with an investment of HK$280 million. The purchase of more shares worth HK$83 million from the Chas would give him control of ATV.

His lawyer reiterated the Cha brothers' intended sale of shares to the third party [Wang] clearly breached the agreement as the company's shareholding structure should not be altered in the absence of consent from both parties, according to the letter of intent approved by the Broadcasting Authority.

However, the lawyer for the Cha brothers denied there was any breach of contract, saying they had no obligation to comply with certain clauses in the "non legally binding document."

Wang's lawyer said his client's legal position in the case as a potential purchaser was different from the Chas. This means it was not necessary for the court to impose any injunction against Wang.

"The Chas can sell their shares to anyone other than Wang," he said.

In May, the Court of First Instance allowed Payson Cha to sell his private company, Panfair, which holds a 10.75 percent stake in ATV, to any third party. The hearing continues today.