Monthly Archives: October 2011

Turkcell CEO responds to TeliaSonera criticisms

Turkcell CEO Sureyya Ciliv said in an interview with the Financial Times that criticisms concerning Turkcell made by its largest shareholder TeliaSonera do not reflect reality. Ciliv attacked the Nordic group’s decision to block payment of Turkcell’s dividend. At the same time, Ciliv told the Financial Times that its boardroom conflict would not prevent the company from forging ahead with possible acquisitions in the Middle East. At present, a conflict exists between Swedish and Russian shareholders TeliaSonera and Altimo and Cukurova, the Turkish conglomerate which exercises control over Turkcell through a complex corporate structure. TeliaSonera and Altimo failed to oust the company’s chairman Colin J. Williams at an extraordinary meeting in April. TeliaSonera believes that the deadlock in the board of directors can only be resolved by replacing the current chairman with a truly independent board member. TeliaSonera accounts for 38 percent of the shares, compared with 13.8 percent for Cukurova and Altimo’s 13.2 percent. According to the decision of the Turkcell EGM from 12 October, board member Colin J. Williams was not released in respect of the company’s activities and operations of the fiscal year 2010. Moreover, the agenda item pertaining to “removing one or more than one of the members of the board of directors and the election of new members in lieu of those removed; and the determination of their remuneration” was not put to the vote. Recently, an arbitration tribunal of the International Chamber of Commerce (ICC) has issued its final award related to a dispute concerning the 2005 Turkcell Holding share purchase agreement between TeliaSonera and Cukurova. The tribunal ordered Cukurova to pay damages of USD 932 million plus interest to TeliaSonera.

Turkcell Doesn’t Vote On Dividend, Board Changes

The board of Turkcell Iletism Hizmetleri A.S., Turkey’s largest mobile operator, in an extraordinary general meeting on Wednesday failed to approve paying a dividend and did not vote on proposed changes to the company’s board, including removal of the chairman, a source close to the negotiations told Dow Jones Newswires.

Turkcell shares on Wednesday had closed up 4.62% at 8.6 lira before the conclusion of the meeting as markets bet that a dividend would be announced.