Landline monopoly Turk Telekom, scheduled for privatization by the Turkish government, told Reuters on Tuesday, May 15, it expected 661.73 trillion lira ($578 million) in net profits in 2001, compared to 445.975 trillion lira in 2000.
The comparative figures do not take into account annual inflation the government hopes to limit to around 55 percent in 2001. The Turkish government last week legislated to sell the majority of Telekom, a move linked to $10 billion in new IMF and World Bank loans to lift the country out of economic crisis.
The sale foresees a maximum 45 percent stake for a foreign investor and a golden share for the state. The timetable and exact method for the sale will be set by a tender commission.
Communications Minister Enis Oksuz last week called for a reassessment of the value of Turk Telekom. Goldman Sachs valued the company at $10 billion in 1998, before a downturn in the global telecoms industry over debt worries shaved billions of dollars off company values. ― (Reuters, Istanbul)
© Reuters 2001
© 2001 Mena Report (www.menareport.com)