TeliaSonera Initiates New Arbitration Against Cukurova
STOCKHOLM -(Dow Jones)- Nordic telecommunications operator TeliaSonera AB (TLSN.SK) Friday said it has initiated an arbitration proceeding at the International Court of Arbitration of the International Chamber of Commerce based on breach of a shareholders' agreement between TeliaSonera and Cukurova concerning a stake acquisition in Turkish operator Turkcell Illetisim Hizmetleri A.S. (TKC).
TeliaSonera claims that the announced transaction between Cukurova, a Turkish holding company, and Alfa Group Russia (ALFAGP.YY), concerning indirect shareholding interests in Turkcell, breaches the shareholders' agreement between TeliaSonera and Cukurova.
TeliaSonera said it had agreed earlier to buy a stake in Turkcell from Cukurova, which it said pulled out of the deal in order to sell to Alfa Group.
TeliaSonera alleges, among other things, that Cukurova's transfer of indirect shareholding interests in Turkcell triggers TeliaSonera's right of first refusal to the shares in question.
"The latest developments clearly show that the intention has been to immediately sell indirect shareholding interests in Turkcell without respecting TeliaSonera's rights according to the shareholders' agreement with Cukurova," said Anders Igel, TeliaSonera's president and chief executive. "It is unfortunate that we have to start another legal process around this matter, but we believe it is important to fight for our rights and for a proper conduct of international business."
The arbitration will take place in Vienna.
An update on the situation will be done during a telephone conference later Friday, TeliaSonera said.
(END) Dow Jones Newswires"
Posted to the site on 19th August 2005
