TeliaSonera: Regrets Turkcell's Failed AGM

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Swedish telecom operator TeliaSonera AB (TLSN.SK) Monday said it regrets that an ownership dispute at part-owned Turkish operator Turkcell (TCELL.IS) has resulted in a failed annual general meeting at the company.

 
   MAIN FACTS: 

-The quorum in the AGM was not reached due to the fact that the shareholders couldn't agree on the representation of Turkcell Holding, which accounts for 51% of the shares in the listed company Turkcell Iletisim.

-"We have done our utmost to reach an agreement between the major shareholders, but since Altimo and Cukurova have been unable to resolve their deadlock, we have failed in our attempts," TeliaSonera Chief Executive Per-Arne Blomquist said.

-"We are very disappointed at the outcome of the AGM, and we are not happy with the current structure, where a minority shareholder can block majority decision due to a complex holding company structure," he said.

-"Any attempts to 'nationalize' the company, by excluding TeliaSonera from the Board and appointing a Board, which solely consists of CMB appointed members, are unacceptable and against the Turkish Commercial Code as well as international investment treaties," he said.

-TeliaSonera is one of the founders of Turkcell and a long term, strategic investor, with a 38% direct and indirect ownership, and will continue to make every effort to resolve the deadlock between the shareholders.

-"TeliaSonera is by far the largest minority shareholder of Turkcell, hence it is clear that any further delay in appointing a new Board and of delaying dividend distribution is not in our favour," the company said.

-At 0951 GMT, shares in TeliaSonera were up 0.3% at SEK42.93 against a 2% drop in the wider Stockholm market.

Write to Gustav Sandstrom at [e-mail]

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