Turkish conglomerate Cukurova Holding has had its shares in local mobile operator Turkcell seized by the Turkish authorities after failing to pay a tax bill. The so-called “precautionary seizure” will suspend the firm’s share rights in Turkcell and could see an ongoing ownership dispute with Sweden’s TeliaSonera and Russia’s Altimo tilted in favour of the foreign shareholders. According to a statement issued on the Turkish stock exchange, TRY450 million (US$283 million) in shares, dividend and other rights in Turkcell owned by Cukurova have been seized, after it failed to settle a TRY1.3 billion (US$820 million) tax bill owed by its former chairman, Mehmet Emin Karamehmet.

The share seizure is the latest drama in the battle over ownership of Turkey’s largest operator. TeliaSonera has the largest direct and indirect stake in Turkcell amounting to 37.1 percent, while Altimo has a 13.22 percent indirect stake. But Cukurova currently has a stranglehold over the company because it has a majority share in a holding company (Turkcell Holding) that has a majority 51 percent stake. While all three partners each have two representatives on the board, the controversy has focused on the seventh independent member – and board chairman – Colin Williams. TeliaSonera, which has claimed Williams is not truly independent and has sided with Cukurova, failed last month in its attempt to have Williams removed at the firm’s AGM, and is separately suing him over his alleged lack of independence.