A major TKC stockholder borrows money and uses his stock as collateral. A London court rules that the lender cannot take the stock. The control of TKC stays the same. Why did this reduce the value of the company by over 7%?
There is no rule of law in Turkey. It is much more akin to a third world country ..Rwanda? The minority stock holder and founder has control of the company because of directors appointed by the government. The Pres of Turkey and founder of TKC are dear personal and political friends....the majority stockholders...including Scandanavian Telcos have no rights of ownership. They cannot vote a new chairman in....the last dividend (voted 3 yrs ago0) was never paid because of this issue. Shareholders rights are meaningless in Turkey ...and TKC is the biggest company traded (ADR) in the states!.... Majority stockholders are not allowed to vote in a majority board because of the close ties to the President...who controls the appointed members.
I bought this stock as a proxy for the the turkish mkt, plus a good dividend which I've never received. Seemed like a good idea at one time.
Despite the volume traded in this stock, news for the diy investor is incredibly thin.
Boggles me that TKC has not and does not come out with a clear statement about
when the dividend will be paid and if it will be larger for long term holders. Seems that
if there is a dividend, the date of record for holding is within the past few months.
Appreciate your comment above. I was looking for an explanation, as well. What you
say makes sense.