Following fledgling media company Nexnews.Com Bhd's announcement yesterday of the failure to purchase newspaper company The Sun , the daily's old guard were immediately reinstated into the company's top echelon.

The deal, had it gone through, would have seen the management of weekly business tabloid The Edge playing a bigger role in The Sun .

When the proposed acquisition was announced seven months ago, the two top executives of The Edge were appointed to head The Sun in similar capacities. The Edge managing director Tan Boon Kean occupied the same position at The Sun while the weekly's editor Ho Kay Tatt assumed the post of chief editor.

Both are now back at The Edge , together with all those who were seconded to the newspaper.

Meanwhile, The Sun 's former editor Andy Ng, who was moved to the promotions and marketing department following The Edge 's 'takeover', is now back as editor, and former chief executive officer H'ng Hung Yong who left for Berjaya Corporation Bhd is now managing director of The Sun .

It is understood that the move took effect yesterday as soon as the announcement of the failed business deal was made to the staff.

Yesterday, Nexnews said the parties involved in the proposed acquisition of 73.65 percent of the Sun Media, publisher of The Sun , for RM30 million have mutually agreed not to extend their agreement dated Aug 7, 2000.

Nexnews, which is owned by former banker Tong Kooi Ong, also said its proposed acquisition of 70 percent of the Edge Communications, publisher of The Edge , for RM7 million has been mutually terminated.

The Sun Media group is controlled by business tycoon Vincent Tan, while Edge Communications is also controlled by Tong.

Tong created ripples in the local media industry when he took over Gemtech, a jewellery company in Penang, via Net Edge Online through an offer to four major shareholders for RM72.83 million cash.

Tong later renamed Gemtech, Nexnews.com, to reflect its new venture in the media industry and Internet.

Marked improvement

Since The Edge took over the management of The Sun , several media analysts have observed that the paper's news coverage has seen a marked improvement.

The paper has also been commended for being bolder and more independent compared with other mainstream media.

However, sources told malaysiakini that its editors were warned by the Home Affairs Ministry to tone down its news reporting last week.

Several journalists in the newspaper have expressed disappointment with the turn of events, saying they felt a sense of despondency and uncertainty over the future direction of the company.

Both Tan and Ho were unavailable for comment.