Doubts Over Oger's Commitment To Turk Telecom Surface

October 2006 | Company Finance Alert

The 55% stake held by the Saudi Oger-led consortium in Turkey's incumbent operator Turk Telecom could be in jeopardy. The consortium, which includes Telecom Italia SpA and BT Group's international consulting arm, BT Telconsult, having placed a winning offer of US$6.55bn in July 2005 could be forced to give up its share in the operator. Under the terms of agreement, Oger Telecom had promised to invest US$3.5bn between 2005 and 2010, of which US$950mn would be invested in 2005 and a similar amount in 2006. However Oger's total investment to-date is just US$300mn. Turk Telecom Board Chairman Tayfun Acar said

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