TeliaSonera Keeping an Eye on Cukurova's Turkcell Stake

STOCKHOLM -(Dow Jones)- Swedish telecommunications operator TeliaSonera is monitoring developments relating to Turkish holding company Cukurova's stake in mobile operator Turkcell closely, said TeliaSonera spokesman Ola Kallemur Tuesday.

The comment came after Alfa Group Russia's telecom unit Altimo earlier Tuesday demanded that Cukurova repay a $1.35 billion loan given in November 2005 when Altimo also acquired a 13.22% stake in Turkcell.

TeliaSonera, which owns a 37% stake in Turkcell, has long said it wants to achieve majority control of the Turkish mobile telecommunications company and in 2005 signed a deal with Cukurova to buy its stake.

Cukurova however backed out of the deal with TeliaSonera and instead signed a deal with Altimo which included handing over a part of its stake in Turkcell.

An arbitration tribunal in Geneva concluded that TeliaSonera's agreement with Cukurova to buy an effective 27% stake in Turkcell for $3.1 billion is a binding share purchase.

Still, it is uncertain if Cukurova is willing or able to sell its stake due to the deal with Altimo.

"We see no direct implications for TeliaSonera from Altimo demanding a repayment of the loan," said Kallemur.

One possible implication is that Cukurova could be forced to sell its stake to TeliaSonera to pay back the loan.

Kallemur added that TeliaSonera wasn't aware of the difficulties Altimo said Cukurova have had in repaying the loan and that TeliaSonera has not been informed on the matter.

"This a deal between Cukurova and Altimo," Kallemur said.

According to Kallemur all the three parties meet regularly as they're all key shareholders in Turkcell. TeliaSonera and Altimo also jointly own Russian mobile telecom operator Megafon.

-By Magnus Hansson, Dow Jones Newswires;+46 8 545 130 91, magnus.hansson@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 17th April 2007