SPK rejects merger application by DoIan Holding

The Capital Markets Board (SPK) has refused to approve an application for the merger of Dogan Gazetecilik and Handurriyet Gazetecilik.
In its weekly bulletin released on Monday, the board said an application to merge Handurriyet Gazetecilik ve Matbaacilik A.i. (Handurriyet Newspaper and Printing Corp.) and Dogan Gazetecilik A.i. (Dogan Newspaper Corp.), another subsidiary of Dogan Holding, was rejected on the consideration of a further application after a board investigation into the firms.
On Tuesdayand’s opening, Dogan Gazetecilik shares slumped by 9.43 percent and Handurriyetand’s dropped by 4.41 percent on the Borsa Istanbul (BiST).
President Recep Tayyip Erdogan along with many high-ranking state officials have recently waged war against conglomerate Dogan Holding, which owns the mainstream Handurriyet media outlet, for its coverage of the fate of ousted Egyptian President Mohamed Morsi, who was sentenced to death by an Egyptian court in mid-May.
Handurriyet published a report on its website headlined and”World in shock: Death sentence to president who won 52 percent of the vote.and” Erdogan, who also won 52 percent in the presidential election in August, claimed the headline suggested that he had been and”threatened with the death penalty handed down to Morsi.and”
Last week, Petrol Ofisi (PO), the former fuel retailing unit of Dogan Holding, was barred from state tenders by the Ministry of Energy and Natural Resources.
The media also reported on Monday that the Ankara Chief Public Prosecutorand’s Office had filed an investigation against several businesspeople including Dogan Holdingand’s honorary president, Aydin Dogan, over public tenders they won during the Feb. 28, 1997 coup era covering the period between 1996 and 1999.
In 2009 Dogan was handed a large tax penalty after a tax inspection that followed its close coverage of corruption allegations against figures close to Erdogan. After the tax demand, Dogan was forced to sell the groupand’s Milliyet and Vatan newspapers, the Star TV station and shares in Petrol Ofisi.

SOURCE: Today’s Zaman