KKR, TPG eye up $1.5bn Turkish Delight

Buyout titans KKR and TPG are the last two private equity firms still in the running for assets of Turkish media group Doğan Yayin, according to the FT. Bids are said to be starting at $1.7bn, with Goldman Sachs appointed to lead the process. Trade player Time Warner is also in the running, and already partners with Doğan in their CNN Turk joint venture.

It is not the first time Turkey has made headlines for hosting a mega-deal: in early 2008 BC Partners won a contested auction to win the $3.25bn Migros Turk deal. Carlyle, Russia's Alfa, Bain Capital, Turkven-BC Oartbers and KKR had all looked at the deal.

Other parties have already dropped out of the Doğan bidding, with 12 initially believe to have been interested, largely owing to pricing concerns. Apax Partners is cited as one such group.

However, the uncertainty surrounding the deal could also be a factor: The bids are non-binding, and some suggest the auction is being run to exhaust options while the owner dukes out a court battle over back taxes and penalties, and may not ultimately lead to a sale. The penalties stem from a ruling by the Turkish watchdog back in October and are supposedly down to the group's unfavourable coverage of the AK Party. They amount to more than $3bn.

Turkey is attractive to investors for a number of reasons, not least its population of 78 million people - one of the largest in Europe - and Brussels' negotiations to eventually permit the country into the European Union. Reflecting increasing interest in the country, global law firm Clifford Chance opened an office in Istanbul in November.

Doğan was also reported to be putting its flagship paper, Hurriyet, on the blocks. However yesterday the parent company put out a statement denying this, which was printed initially in Reuters.

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• Topics
• CEE
• Buyouts
• KKR
• TPG Capital