Turkish lottery tender canceled as bidders fail to meet $1.62 bln value

OPAP, in a joint venture with Turkish business group Dogus, which owns Garanti Bank, FIBA and contractor Alarko, and joint venture, Turkcell and Tepe Holding’s Sans Oyunlari Yatirim Holding A.S., both failed to meet the starting price set by the commission.

"Since the bidders failed to increase the price, the tender is canceled," the tender commission said in a statement after the tender, broadcaster NTV reported.

Both ventures held back from offering new proposals after the commission head announced the higher than expected $1.622 billion starting price.

An executive from OPAP said they were waiting for the decision of the commission before proceeding, but added the starting price was above their expectations.

OPAP, Europe's biggest betting firm, and Turkcell, the country's leading mobile operator, remained as the last two bidders after meeting the preliminary tender criteria for a 10-year license to operate Milli Piyango.

Austrian Lotteries and a joint venture between Italian-based betting company Lottomatica and Turkey's Dogan Holding withdrew from the tender process in April.

Milli Piyango generated a net income in 2007 of $220 million from gross sales of $770 million. The successful operator will keep 17 percent of the net income.

Turkey's government is keen to push ahead with its privatization program including the National Lottery, highways and bridges, and sugar factories this year despite reduced demand from investors due to the global crisis.