(AFP) Prime Minister Mahathir Mohamad urged MCA to end the controversy over its newspaper takeover which has sparked uproar in the minority Chinese community.

Mahathir told reporters that earlier today he met the head of a business consortium which opposes the takeover by the Malaysian Chinese Association (MCA) of two independent dailies.

Hundreds of Chinese organisations also oppose the deal as a threat to press freedom.

The MCA is the second largest party in Mahathir's Barisan Nasional coalition. Senior coalition leaders have voiced fears that the controversial takeover could lose it crucial Chinese votes.

The MCA's purchase of a majority stake in Nanyang Press, which publishes Nanyang Siang Pau and China Press , has deeply split the party.

It will hold a special meeting this Sunday to try to end the row.

Get rid of the controversy

Yesterday a consortium of five Chinese businessmen offered to buy back the MCA's stake in Nanyang for RM234.3 million - more than the party paid.

Mahathir said the consortium chief Lim Guan Teik asked for his opinion on its proposal.

"I gave him my opinion so it's up to him...my suggestion is very simple," the premier told reporters, without disclosing his view.

"I don't want any controversy. They have to find a way to get rid of this controversy (which is) not necessary."

The MCA already owns the largest English-language daily, The Star . But the Chinese-language press has traditionally been more independent than its English-language and Malay counterparts.

BN relied heavily on Chinese votes to retain its two-thirds majority in the 1999 general election following an erosion of Malay support.