Seeking Alpha: Turkcell Executing On The Ground, But Litigation Still A Sizable Hurdle

The spat between three of Turkcell's (TKC) major shareholders was ridiculous one and a half years ago and it hasn't gotten any better since then. With a recent U.K. ruling reinstating TeliaSonera's (OTCPK:TLSNY) nearly $1 billion claim against Cukurova and the $1.6 billion payment from Cukurova to Alfa/Altimo still pending, it seems unlikely that tomorrow's annual meeting will go forward, meaning that the wait for clarity on dividends and the shareholder structure drags on.

If there's a bright side to the story it is that Turkcell is operating relatively well in its core Turkish mobile operations. Fierce competition with Vodafone (VOD) and Avea is still very much a threat, but EBITDA growth has been getting better and Turkcell should be a major beneficiary of more rational competition going forward. The dispute between Turkcell's major shareholders is definitely an ongoing risk factor, but Turkcell has been building up quite a cash pile and resolution of the dispute should lift a meaningful non-operating cloud from the shares before 2014 is over.

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Turkcell Executing On The Ground, But Litigation Still A Sizable Hurdle