Bloomberg News

Turkcell Fails to Approve Dividend at Third General Assembly

October 13, 2011

Oct. 13 (Bloomberg) -- Turkcell Iletisim Hizmetleri AS, Turkey’s largest mobile-phone company, couldn’t approve a proposed dividend of 75 percent from 2010 profit after shareholders failed to pass financial statements at an extraordinary assembly yesterday, according to a company statement.

Agreement wasn’t reached on key items in the meeting late yesterday following a prolonged dispute over management between the company’s largest shareholders, with Turkey’s Cukurova Holding AS on one side and TeliaSonera AB of Sweden and Alfa Group of Russia on the other.

TeliaSonera and Alfa Group executives walked out, instructing their proxy to abstain from voting and canceling planned discussion of key items including the dividend, Cecilia Edstroem, a spokeswoman for TeliaSonera, said by telephone yesterday.

Turkcell shares rose 4.6 percent to 8.60 liras on the Istanbul Stock Exchange yesterday, as investors bet the dispute would be resolved and the dividend paid.

Cukurova is battling with TeliaSonera and Alfa for control of Turkcell in wrangling that’s escalated to court cases stretching from Geneva to the Caribbean islands. Yesterday’s extraordinary meeting had already been scheduled twice previously, with shareholders each time failing to reach agreement.

The non-Turkish shareholders want to replace Turkcell Chairman Colin Williams, saying he favors the company’s founding shareholder Mehmet Emin Karamehmet, chairman of Cukurova and Turkey’s richest man.

--Editors: Chris Peterson, Ana Monteiro

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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