Mobile, Turkey:  Vodafone Group has come out tops in the Turkish Government’s auction for Telsim, with a US$4.55 billion bid for Turkey's number two wireless carrier.

Vodafone had declared the Telsim deal attractive because it believes Turkey's mobile phone market has significant growth potential.

One other organisation is satisfied, namely Nokia. As previously agreedwith Telsim and the Turkish Savings and Deposit Insurance Fund (TMSF) (see story) which currently controls and manages Telsim's assets) Nokia will receive a settlement payment upon completion of the sale. Nokia's share is 7.5% of the purchase price, with this sum expected to be received during the first two months of 2006.

"We are extremely pleased with this positive outcome and a satisfactory resolution of our claim against Telsim," says Rick Simonson, Chief Financial Officer, Nokia. "TMSF has done a tremendous job in carrying out the auction in an effective and successful fashion, and for that hard work we're grateful…Vodafone will be helping to shape the future landscape of communications in Turkey."

Nokia's claims in this matter arose from Telsim's default on its repayment obligations under a loan facility related to network equipment delivered in 2000. In February 2004, the Arbitral Tribunal in Zurich fully approved the claim against the Turkish company.

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More info: www.vodafone.com  &  www.nokia.com