UPDATE 3-RTL Group, Time Warner bid for Turkey’s Dogan

* Private equity interested in newspapers

* Goldman Sachs said to be advising sale

* Company says process continues
(Adds News Corp drops out of bidding, value of assets)

By Asli Kandemir

ANKARA/NEW YORK Oct 13 (BestGrowthStock) – Germany’s RTL Group and
U.S.-based Time Warner Inc (TWX.N: ) have submitted bids for
assets belonging to Turkey’s largest media company Dogan Yayin
(DYHOL.IS: ), a source close to the deal said on Wednesday.

Dogan Yayin, which owns Turkey’s largest broadcasting
network as well as several newspapers and magazines, is valued
at $2 billion, according to another source familiar with the
process.

News Corp had submitted a bid but they pulled out on
Wednesday because the value of the media assets was “too rich,”
according to a third source familiar with the talks.

Several big media conglomerates such as Time Warner and
News Corp are seeking to expand their holdings in emerging
regions like India, central Europe and Latin America.

Dogan Yayin shares jumped as much as 13 percent on reports
it was selling its media units.

The company, which is embroiled in a dispute with the
government over record tax fines that exceed its market value,
is seeking to sell its partnerships and assets.

One source said private-equity companies are interested in
Dogan’s newspapers, which include mass-circulation Hurriyet and
Milliyet dailies.

A senior Dogan Yayin executive, Vuslat Dogan Sabanci, who
is chairwoman of unit Hurriyet Gazetecilik (HURGZ.IS: ), told
CNBC-e television that Dogan Yayin had received non-binding
offers.

The company, however, said in a filing with the stock
exchange it had previously announced its plan to sell assets
and that there were no new developments.

Yet another source told Reuters that Goldman Sachs was
facilitating talks with the potential buyers.

News Corp already part-owns a Fox channel in Turkey. News
Corp declined to comment.

RTL is owned by German media conglomerate Bertelsmann
[BERTL.UL], which said in September it would be on the lookout
for any takeover opportunities if they arise. RTL had no
comment.

Dogan Yayin operates CNN Turk in a deal with Time Warner.
Time Warner declined to comment.

Shares in Dogan Yayin jumped as much as 13 percent on
Wednesday and traded up 10.7 percent at 1.55 lira at 1327 GMT.
Parent company Dogan Holding (DOHOL.IS: ) stock rose 2.9 percent,
outperforming the main stock exchange index’s (.XU100: ) 1.11
percent rise.

The Istanbul-based company has accused the government of
fining it a record 4.8 billion lira ($3.4 billion) last year
for alleged tax irregularities because of its critical
political coverage.

Prime Minister Tayyip Erdogan has said Dogan behaves like
an opposition party, but denies the probe is politically
motivated.
(Additional reporting by Selcuk Gokoluk and Alexandra Hudson
and Yinka Adegoke and Jennifer Saba in New York; writing by
Ayla Jean Yackley, Editing by Michael Shields and Derek Caney)

UPDATE 3-RTL Group, Time Warner bid for Turkey’s Dogan