Doğan’s second offer also rejected

Hurriyet Daily News with wires

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The tax office told Doğan, the country’s largest media group, that the brand names of its Star and Kanal D television channels aren’t acceptable as collateral against a tax penalty of 914.8 million Turkish Liras ($534 million), according to media reports.

First rejection

DMG said March 13 that it was offering the brand names as collateral after the tax office rejected an earlier offer to use shares in its television companies.

It has put up the brands of its Kanal D and Star TV stations, which it says are worth a combined 1.12 billion liras, after the Finance Ministry rejected its earlier offer of shares in the two channels.

"The collateral was not seen as suitable, according to the public-receivables law," DMG said in a filing with the stock exchange on Friday.

Most of the tax penalty is for alleged irregularities during DMG’s sale of a 25 percent stake to German publisher Axel Springer for 375 million euros ($475 million) in 2006. DMG and its parent Doğan Holding have denied any wrongdoing.

On Wednesday, DMG said it provided 45 percent of Kanal D and 92 percent of Star, as well as a commercial building in central Istanbul appraised at 10.4 million liras, reported Reuters.

DMG operates Hürriyet and Milliyet newspapers, as well as CNN Türk, a partnership with the U.S.-based broadcaster.


Daily News is a Doğan Media Group publication.