Turkey's Koc Declines as Future in Flux After Chairman's Deathby
Shares fell as much as 5.2% on concern over future strategy
BNP says shares may fall more until there's clarity on outlook
Koc Holding AS fell the most this year as investors sought clarity on how Turkey’s biggest conglomerate will be run following the death of Chairman Mustafa Vehbi Koc.
The stock declined 2.6 percent to 10.97 liras at the close in Istanbul, having earlier fallen as much as 5.2 percent after Koc, 55, was confirmed to have died of a heart attack on Thursday. Volume exceeded the three-month average by 49 percent. The Borsa Istanbul 100 Index lost 1.5 percent.
“Investors may be concerned about whether the group’s strategy will change or not with the next chairman,” Alper Paksoy, an analyst at BNP Paribas Equity Research in Istanbul, said by phone. “These worries may somewhat weigh on the group’s shares until there is clarity about how the top management will shape up.”
Koc, who succeeded his father as chairman in 2003, oversaw several landmark deals at the conglomerate, including the takeover of 51 percent of Tupras Turkiye Petrol Rafinerileri AS, Turkey’s sole refiner, from the government for $4.1 billion in 2005. The group’s 2014 sales of $31 billion accounted for about 5 percent of Turkey’s gross domestic product.