Telecom Italia Joins Saudi Oger For Turk Telekom Bid

MILAN -(Dow Jones)- Saudi Oger, which pre-qualified to participate in the sale of 55% of Turk Telekom, said it has formed a consortium with Telecom Italia SpA (TI) to bid for the Turkish telecommunications operator.

Saudi Oger submitted Friday the composition of its consortium to the Turkish privatization administration.

Oger Telecom is the consortium leader, while Telecom Italia joins as a potential minority partner.

Oger Telecom will continue its partnership with BT Group PLC's (BT) international consulting arm BT Telconsult on operational and technical matters. A management agreement has been signed with BT Telconsult allowing both companies to further their operational and technical cooperation if the bid for the 55% Turk Telekom stake succeeds.

It is anticipated that Oger and BT Telconsult will manage the fixed line business, while Oger Telecom and Telecom Italia will focus on the management of the mobile business.

Oger Telecom, Telecom Italia, through wireless arm Telecom Italia Mobile SpA (TIM.MI), and BT Telconsult bring a wealth of experience which will be the driving force for the transformation of Turk Telecom into a world-class telecoms company.

Oger Telecom managing director Paul Doany said: "We have communicated to the (privatization administration) and to the Turkish press our intention to file a joint venture group."

"We have also stated that we were open for discussions with all parties that we believe have a potential to contribute to the further growth and competitiveness of the company," he said.

Doany concluded: "The cooperation of Oger Telecom, Telecom Italia and BT Telconsult together with the Turkish government - who will have the 45% of the shares of the company - forms a unique partnership, the positive effects of which will extend to the Turkish public at a time of" an initial public offering.

The bidders are required to present their bid on June 24. Saudi Oger will submit its bid containing the final partnerships by June 24.

(END) Dow Jones Newswires"

Posted to the site on 20th June 2005