Turkish media group's value tanks on rumors of sale to German publisher
Posted by Lisette García on November 10, 2009 at 9:32 AM
Shares of Dogan Yayin - Turkey's largest media group - sank today following denials of its sale to a German publisher despite a rising tide on the Istanbul Stock Exchange, Reuters reported today. Trading in the security also was suspended briefly on the basis of the rumour, Reuters India reported.
Rumours of the sale to Axel Springer emerged after Dogan Yayin announced in October it sought a partner or to liquidate some ancillary assets in order to satisfy a record tax fine worth more than the company itself, Reuters reported elsewhere.
Rumours of the sale to Axel Springer emerged after Dogan Yayin announced in October it sought a partner or to liquidate some ancillary assets in order to satisfy a record tax fine worth more than the company itself, Reuters reported elsewhere.
The rumour resurfaced today when Aksam published a report
that Dogan had indeed sold five of its newspapers to Axel Springer, a
German media group that publishes 150 newspapers in 32
countries. The reported sale of Milliyet, Vatan, Posta, Radikal and
Fanatik would leave Dogan Yayin with only the Hurriyet newspaper,
alongside its television and other media interests, Reuters India reported earlier in the day.
Meanwhile, a tax hearing scheduled in March for today to address Dogan Yayin Holding's Lira 4.8 billion fine has been indefinitely postponed, according to a press release posted on the corporation's Web site. In a possibly related move, the corporation's board held an emergency meeting Thursday to amend its charter, another press release stated.
News of the tax levy prompted The Economist to question in a September article whether the enforcement action constitutes a form of censorship by the new, more Islamist government. Aydin Dogan, the tycoon behind the media group, claimed in a February Reuters article that the enforcement action was undertaken in order to silence an unfavourable press. Newsweek in October suggested Turkey's tax crackdown on the press may jeopardise its bid to join the European Union.
Meanwhile, a tax hearing scheduled in March for today to address Dogan Yayin Holding's Lira 4.8 billion fine has been indefinitely postponed, according to a press release posted on the corporation's Web site. In a possibly related move, the corporation's board held an emergency meeting Thursday to amend its charter, another press release stated.
News of the tax levy prompted The Economist to question in a September article whether the enforcement action constitutes a form of censorship by the new, more Islamist government. Aydin Dogan, the tycoon behind the media group, claimed in a February Reuters article that the enforcement action was undertaken in order to silence an unfavourable press. Newsweek in October suggested Turkey's tax crackdown on the press may jeopardise its bid to join the European Union.
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