Bids for Turk Telekom accepted until mid May
Turkey said on Thursday it will accept offers from foreign investors until May 14 for the block sale of 33.5 percent of Turkish Telekom, a key part of a rescue aid deal between Turkey and the IMF. Once the offers had been made, Turkey would hold an auction between the two participants who offered the highest bids to finalize the sale, State Minister for Privatization Yuksel Yalova, told a press conference. He did not give a date for the auction.
Telekom's prospective partner would have the majority vote in a committee to be set up to decide on key matters such as personnel, investments, financial matters and the appointment of senior managers.
The sale, originally set for 2000 in a stand-by deal with IMF last December, went awry after the failure of a previous tender offering a 20-percent stake and a subsequent dispute within the government on how the tender conditions should be revised.
Turkey was forced to speed up the process and to increase the stake and offer control to the prospective buyer, when it had to turn yet again to the IMF earlier this month following a financial crises which threatened devaluation.
The Fund promised a package of 10 billion dollars for Ankara in return for enhanced economic measures, including a speedy sale of stock in Turkish Telekom.
Under the same deal, Turkey announced on Wednesday the terms for the sale of 51 percent of Turkish Airlines (THY), which is expected to be completed next April. Bids in the THY tender will be taken by February 28. — (AFP, Ankara)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)