UPDATE1-Focus Media says audit committee starts internal inquiry

(Reuters) - The company said the counsel informed it about the
investor, without indicating the source of the evidence,
raising questions primarily on certain related-party
transactions the company reported in 2005.




The Shanghai-based company was first informed about the
short seller in a letter from the counsel dated June 1. The
counsel reiterated its findings in another letter to the
company on June 22.


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