The most notable court battle of late was over the control of TV Nova-the largest television station in the Czech Republic. The case pitted Ronald Lauder, American businessman, philanthropist, and former ambassador to Austria, against Vladimir Zelezny, the chief executive of TV Nova and an important figure on the Czech political scene who is not affiliated with any party. The station's popularity makes it significant from both economic and political perspectives. CET 21, a company controlled by Zelezny, owns TV Nova's broadcasting rights, which were licensed for free from the State Council for Radio and Television Broadcasting. According to CME, Zelezny began stripping the assets of CNTS after he gained control of it in 1998.
Asset stripping by managers is rampant in the Czech Republic.
What is unusual about the TV Nova case is that Zelezny allegedly did to a large foreign investor what Czech managers often do to state banks, holding companies, the National Property Fund, and the like. In other words, Zelezny executed an internal takeover of a company, effectively separating it from its owner. Lauder sued Zelezny in the Czech Republic and asked the Council for Radio and Television Broadcasting to restore the original owner-ship structure. The chances of a foreign investor in the Czech courts succeeding against one of the country's most influential and powerful men are less than promising. In response, Zelezny sold most of his shares in the company that owns TV Nova to two companies that are owned by his friends and associates.