Turkish union seeks court block on BAT's Tekel buy
ANKARA, March 4 (Reuters) - A Turkish labour union wants a court annulment of the sale of state-owned cigarette firm Tekel to British American Tobacco (BATS.L), the union's lawyer told Reuters on Tuesday.
BAT, the world's second largest cigarette group, won the auction for Tekel on Feb. 22, beating off three Turkish rivals with the highest bid of $1.72 billion in a deal increasing its market share fivefold.
The Tek Gida-Is food sector union and a tobacco industry association launched the case at Turkey's top administrative court, the Council of State, seeking the suspension of the sale process and the cancellation of the tender commission's decision.
"We seek the annulment of the decision by the tender commission on Feb. 22," said Tek Gida-Is lawyer Gokhan Candogan, arguing that the sale tender was "clearly contrary to the law."
The deal came just weeks after Turkey's parliament approved a law banning smoking in public places over the next 15 months which BAT estimates will cut smoking levels by 5 percent in the eighth largest market in the world.
The deal will boost London-based BAT's Turkish market share to around 36 percent from just over 7 percent and make it number two behind Altria (MO.N), the world's biggest tobacco group and maker of Marlboro, on 41 percent. (Reporting by Hatice Aydogdu; Editing by David Cowell)
