Sabanci determined to purchase Turk Telekom

He said, "We are determined to purchase Telekom with Koc Holding."

Transport Minister Binali Yildirim recently said that the privatization tender for Turk Telekom would be held after July 15, emphasizing that registration for demanding information about the company would expire on May 20.

Turkey has promised the International Monetary Fund (IMF) it will privatize the national phone carrier as it seeks to raise billions of dollars in revenue under its $19 billion loan pact. Sale of the 51 percent stake in the national phone carrier is a cornerstone of Turkey’s faltering IMF-backed privatization program.

Turkey has not yet set a value for Turk Telekom, but a slump in the global telecommunications sector in recent years has prompted independent valuations as low as $2 billion.

Independent commissions consisting of the Transport Ministry, Privatization Administration (OIB) and Treasury officials are carrying out Turk Telekom’s privatization tender studies.

Turkish industrial conglomerates Koc and Sabanci are interested in the tender. They announced last month that U.S. investment bank Goldman Sachs would act as their adviser in the Turk Telekom sell-off.

The conglomerates, which are both seeking stakes in Turk Telekom, said last year they would join forces in the block sale as well as in the privatization of the National Lottery.

Government plans to allow foreigners to purchase more than 45 percent of Turk Telekom is ready.

Sabanci to revise 2004 goals
Metin stated that they wanted to be a respected and active group in the region. He replied to the question, "Why did you separate from your foreign partners?" by explaining the reason why they separated from Toyota. He said, "We separated from Toyota. Because we didn’t want to add too many capital intensive businesses to our structure. We didn’t want to be among the first three groups in the automotive sector in the world."

Stating that they aimed to reach $1 billion in endorsements in the food sector through to 2007, Metin explained the reason why they separated from Danone:

"Danone wants to work only with the Sabanci Group in Turkey but Sabanci Group wants to make such products more widespread in the whole region. When you don’t fullfil the conditions, you don’t have the opportunity to grow. Finally, of course we divorced."

Stating that the first three months of the year was very good, Metin said: "When we announce the results of 2003 in the general assembly on May 17, you’ll see that the data is very good. We will revise our goals. I am very hopeful for 2004."

Metin said that after the death of Sakip Sabanci, the new executive board chairman would be chosen in an election of the general council.