Discount long-distance call company Redtone International admitted that preferential allocation offer of soon-to-be-listed shares were offered to certain journalists and editors of Malaysia's major print organisations, but denied that the move was calculated to buy off the media.

When contacted, Redtone marketing manager Hazel Hassan confirmed that some print editors and journalists were accorded preferred access to two lots of Redtone shares at 95 sen per share, "but not all from the business section" as recently alleged.

However, Hazel stressed that the offer was completely voluntary, and had been made as a "measure of goodwill" to all individuals or companies that have had a working relationship with the company.

"It was allocated the same way it is done with our staff. The move was not intended to question the integrity (of recipients)," she said.

Denying that the offer compromises journalistic independence, Hazel said Redtone has the integrity not to pressure journalists to write in its favour.

Universally accepted journalistic ethics, however, bar media practitioners from accepting gifts in any form. This principle is included in the voluntary code of ethics of the National Union of Journalists in Malaysia.

Blog expos

The issue was raised last week by online blogger Jeff Ooi, who said a number of business journalists and section editors had been sent the share offer by Redtone's underwriter CIMB.

Ooi confirmed to malaysiakini that names on the mailing list included those from major print dailies, weeklies and bi-weeklies.

However, he declined to disclose the source of his information except to say that they were journalists who received the CIMB letter.

"They were insulted and have declined the offer, but would rather keep quiet about it. It is, after all, quite embarrassing," he said.

When contacted, a CIMB official said that he could not comment on the issue at present.

Redtone's placement offer to media professionals is part of some 28,080,000 ordinary shares set aside for 'identified investors', under its listing exercise on the tech-based Mesdaq market.

Out of the total public issue of 31,080,000 shares, 3,000,000 have been set aside for the Malaysian public. The initial public offering will raise RM35.63 million for the company.

According to Bernama, Malaysian Issuing House today said that Redtone has received a total of 65,610 applications for 268.277 million from the public for a total of three million shares available for public subscription.

This represented an oversubscription rate of 88.43 times.

Redtone's core business is in providing telecommunication services packages, including discounted call services to both consumers and businesses.