Istanbul - Shares in Turkcell Iletisim Hizmetleri AS, Turkey's biggest mobile-phone company, were suspended from trading in Istanbul as the stock exchange sought a statement from the company.
The exchange announced the suspension at 1:52 p.m. in Istanbul, saying the company has been asked to comment on an unspecified news report. It didn't say when trading will resume.
Iran's parliament in February barred Turkcell from owning a majority stake in the venture, after the Istanbul-based company won an auction last year to set up a network in Iran. Turkcell said last month it was still discussing the project with Iran. Iran has broken off talks with Turkcell Iletisim Hizmetleri AS, on setting up a cellular network in the country and has started talks with South Africa's MTN Group Ltd. instead, Reuters reported, citing an Iranian telecommunications official.
Turkcell lost its chance to take a stake in the venture because it was unwilling to accept a non-controlling role even after Iran's parliament ruled that it could not own a majority stake, Masoum Fardis, the manager of Iran's second mobile license, told Reuters.
Turkcell won a contract last year to set up a cellular network in Iran, whose parliament ruled this year that foreign companies shouldn't be allowed to own more than 49 per cent of the company. Turkcell said last month it was looking for a solution that would still allow it management rights while holding a minority stake. Meanwhle, Telecom Italia SpA said it is willing to sell its stake in a joint venture with Turkey's state phone company to help with the company's sale, Vatan daily reported, citing a letter Telecom Italia chief executive sent to the government.
The Italian phone company is amenable to setting a price for its stake in Avea, the mobile phone operator it jointly owns with Turk Telekomunikasyon AS, before the sale of Turk Telekom is completed, Telecom Italia's Marco De Benedetti told the government, Vatan said. Etisalat, one of the potential bidders for Turk Telekom, said yesterday it won't bid unless the Turkey clarifies the future of Avea.
© Khaleej Times 2005
