Vodafone wins Telsim - Has victorious Sarin made the right call? (Times Online)

Following highly contested bidding for Telsim (second mobile operator), Vodafone won with US$ 4.55 billion price tag out bidding MTC (Kuwait) by US$20 million as well as runners up Egypt's Orascom and Emaar of Dubai. Russia's Sistema and Etisalat of the United Arab Emirates were eliminated earlier on after they submitted the lowest sealed bids.

Telsim was seized by the Turkish Government following the collapse the Uzan's family Imar Bank which laddened the Government with debts as well as claims by Nokia & Motorola for over US$ 2 billion. The Sale is good news for Turkey's finances, credibility and its privatization efforts.

Vodafone will need to invest over US$ 1 billion in Telsim. With mobile telephony penetration at 56% in Turkey in comparison to 86% in Germany & 101% in UK, Turkey will offer Vodafone growth opportunities. The city reaction was mixed. The share price of Vodafone dropped by close to 3% following announcement of the deal and several downgrades by City Brokers, one of the largest daily movement for FTSE 100. Nevertheless, several Investment banks have expressed bullishness on the deal. What is for sure, is that the Turkish mobile market is set for a huge shakeout judging by the 7% drop in Turkcell (the no1 mobile operator in Turkey).

Vodafone beats off rivals in Turkish mobile auction
Turkcell May Struggle Following Vodafone's Turkish Acquisition