Turkcell’s general meeting failed to convene again

ISTANBUL - Reuters

Tukcell General Manager Süreyya Ciliv. A general meeting of Turkcell could not be convened today due to a lack of a quorum amid continuing disagreements between shareholders. DHA photo

A general meeting of Turkey’s biggest mobile operator, Turkcell, could not be convened today due to a lack of a quorum amid continuing disagreements between shareholders.

The operator’s general assembly was to meet today to discuss paying 2010, 2011 and 2012 dividends, which have been suspended due to the legal disputes between shareholders.

Swedish TeliaSonera has the largest direct and indirect stake in Turkcell, amounting to 37 percent, but Turkish Çukurova controls Turkcell through a complex shareholder structure.

TeliaSonera’s dispute with Çukurova dates back to 2005 when the Swedish group agreed to buy Çukurova’s stake in Turkcell for $3.1 billion.

Çukurova backed out of the deal, leaving TeliaSonera to try and force it to cough up the shares and seek damages. Çukurova’s efforts to keep itself afloat and regain full control of its stake in Turkcell are now in limbo after a handful of international court rulings.

The 13.8 percent stake in Turkcell was seized by Russia’s Alfa Group, another major player in Turkcell, after Çukurova defaulted on a $1.7 billion loan. A London court in January ruled Çukurova could recover the stake if it repays Alfa, including interest, but any signs of further weakness in the company’s finances may increase the likelihood it will not be able to do so.

Turkey’s Savings Deposit Insurance Fund (TMSF) last week seized control of 45 companies belonging to the Istanbul-based Çukurova Group, including Show TV and armored vehicle manufacturer BMC.