Turkcell Earnings Said to Be Delayed by Lack of Board Members
Turkcell Iletisim Hizmetleri AS (TCELL) is delaying the announcement of second-quarter earnings because its board doesn’t have enough members to approve the data.
The earnings, previously set to be announced July 18, are ready and won’t be released until at least five members required out of seven approve them, a Turkcell official said, asking not to be named because of the sensitivity of the subject.
The company, controlled by Sweden’s TeliaSonera AB (TLSN), Cukurova Holding AS of Turkey and Alfa Group of Russia, currently has three valid members on its board after the terms for four others expired, the official said.
Turkcell has been at the center of a dispute between its founder Mehmet Emin Karamehmet, who owns Cukurova, TeliaSonera and Mikhail Fridman, the Russian billionaire who controls Alfa Group. The company hasn’t paid dividends since 2010 as they have been blocked by TeliaSonera and Altimo, Alfa Group’s telecommunications unit, in an attempt to force Chairman Colin Williams from the board. There was no quorum in a shareholders’ meeting on June 24 to discuss dividends.
A law pending Turkish President Abdullah Gul’s approval that would give the Ankara-based capital markets regulator additional powers in company board disputes may resolve the deadlock, the official said.
Should the new law be approved, the regulator, which appointed three independent board members to the Turkcell board in March to help resolve the disputes, may either appoint two more board members to bring the number to five, or may allow the members whose terms expired to be extended, the official said.
Turkcell rose 0.9 percent to 11.65 liras at 2:09 p.m. in Istanbul trading.
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