Watchdog wants Alfa offer

19 Feb 2007

Turkey’s Capital Markets Board has said Russia’s Alfa Group must issue a tender call to minority shareholders in its local venture Turkcell within two weeks after a court cancelled Alfa’s exemption. Reuters reports, however, that it is unlikely that Alfa will apply for the tender call, and it will instead either cancel the agreement under which it acquired a 13.22% indirect stake in Turkcell from Cukurova in 2005, or it will forge a deal with the cellco’s largest shareholder, TeliaSonera. The Nordic powerhouse has said it will exit the Turkish operation if it is unable to gain control of the company. TeliaSonera is hoping legal action to annul the 2005 deal will leave the way open for it to acquire the stake. Russian newspapers recently reported that Alfa may swap its Turkcell shares in return for a minority stake in TeliaSonera.

Turkey, Telia Company, Turkcell