[Intl-tobacco] Turkey invites bids for state-run Tekel tobacco

[robert weissman]

Monday December 13, 7:41 PM
Turkey invites bids for state-run Tekel tobacco

ANKARA, Dec 13 (Reuters) - Turkey invited bids on Monday for the sale of the
tobacco business of state concern Tekel and it set a Feb. 18 deadline for
submissions. Turkey cancelled the sale of the company's tobacco
operations in
November 2003 after bids in the tender fell short of government
expectations. Japan
Tobacco made the highest bid of $1.15 billion at that time. British American
Tobacco also participated.

Bidders must pay a temporary guarantee of $30 million to participate in
the tender.
Negotiations will follow closed bids. Turkey's privatisation office
decided in
favour of an "asset sale" rather than the block sale of company shares
in order to
eliminate possible risks and attract investors, said tobacco sector
sources. Under
the asset sale method, the privatisation office rather than the buyer
will remain
responsible for Tekel tobacco's legal problems and debt obligations.
"This will
strengthen prospects for the company's sale," said a tobacco sector
specialist.
The 142-year-old Tekel controls a large share of Turkey's cigarette
market, the
world's sixth largest.