Union asks court to stop Tupras stake sale

Turkish oil workers union Petrol-Is said yesterday it had gone to court to stop the sale of nearly 15 per cent of state oil refiner Tupras to foreign investors.

Turkey's privatisation administration (OIB) said it would offer 14.76 per cent of Tupras shares to investors based abroad through the Istanbul Stock Exchange for about $445 million (Dh1.63 billion).

The exchange chairman, Osman Birsen, said he had not given his approval for the sale to go ahead. "We are waiting for some information," he said.

The union said in a statement that the High Board of Privatisation (OYK), not the OIB, can decide on such a sale and that the OIB is authorised only to implement the OYK's decisions.

Petrol-Is also said Turkey's antitrust agency, the Competition Board, should have approved the sale decision, but it has not.

A previous court challenge thwarted the $1.3 billion sale of a 65.76 per cent stake to a joint venture between Turkey's Zorlu Group and Russia's Tatneft.

Last November, Turkey's top administrative court approved a lower court ruling annulling that sale on the grounds that it was not in the public interest and violated tender procedures.

"A further delay due to a legal challenge would be a major blow to the government and to Turkey," said Timothy Ash, an analyst at Bear Stearns.

He said the government's ability to kick-start state asset sales this year will be an important signal to foreign direct investors.

Foreign direct investment is low in Turkey compared with levels in rival emerging market econ-omies such as Mexico and Brazil.