Those on the shortlist are said to include Aveek Sarkar of the Anand Bazaar Patrika (ABP) group and Nusli Wadia of Bombay Dyeing. Hindustan Times (HT) promoted by the Bhartias seems to be out of the running.

The final decision is likely to be that of Rupert Murdoch. A source in Star says: "A final decision will be taken after 15 September 2003."

Star can make an application to the government for approval of a new equity structure till 28 September of a new equity structure that will be within recently announced guidelines for TV news companies.

Sarkar and Wadia have their own supporters. Shareholder and senior advocate Raian Karanjiwala and adman Suhel Seth are supporting Wadia while Member of Parliament Rajiv Shukla is on Sarkar's side. Wadia has friends in the ruling Bharatiya Janata Party (BJP) favouring his case while Sarkar also has friends in the ruling party and among senior journalists close to the BJP.

Among the other visitors understood to have met Murdoch in Mumbai are Sunil Alagh, the recently sacked chief executive of Britannia Industries, where Wadia is the chairman and one of the two controlling shareholders. Alagh is said to be a close friend of Sarkar.

According to sources, Star seems favourably inclined towards Sarkar and ABP because it is a media group and believed to be a congenial partner. But here the big question is ABP''s ability to fund its share of the investment.

The most important aspect of the matter is as to which party has the financial strength to cough up the funds required for the 51-per cent stake in MCCS. Contrary to earlier assessments that placed the total equity for the company that will own Star News at about Rs 40 crore, the Indian partner alone will be expected to fork out upwards of Rs 75 crore.

ABP is a private limited company and its accounts are therefore not open. The company has sharply improved its financial performance in recent years, but whether that will facilitate such a large investment is the question for which Star is understood to be seeking answers.

Wadia''s financial ability is without doubt, and he also has the advantage of strong political connections as well as a personal relationship with Rupert Murdoch, the founder of the group. But Wadia does not have a news background.

HT seems out of the race. HT's vice-chairperson Shobhana Bhartia travelled to London some weeks ago to make a pitch for becoming Star''s Indian partner. Bhartia did not meet Murdoch on his India visit.

After the MCCS ownership is reworked, the sources add, Star may come forward with an initial public offer in February 2004.