UPDATE 2-BAT, Dogan bid in Turkish tobacco privatisation

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By Emma Ross-Thomas

ISTANBUL, Feb 18 (Reuters) - Turkey received four bids for the long-delayed privatisation of cigarette firm Tekel Sigara, the government said on Monday, with British American Tobacco (BATS.L: Quote, Profile, Research) the only major international cigarette firm to bid.

Analysts said a new smoking ban in Turkey, and Tekel's declining market share, might have dimmed interest even though Turkey is one of world's biggest cigarette markets and Tekel one of the few major tobacco assets worldwide that is up for sale.

Turkish energy-to-media conglomerate Dogan Holding DOHOL.IS also bid in a consortium with Citi Venture Capital International (CVCI) and Turkish cigarette wholesaler Tutsab for the company, which has been valued at more than $1 billion.

Private equity firm Cinven [CINV.UL] bid with a group of Turkish businessmen under the group name of Strand Investment, while unlisted Turkish builder Limak Insaat bid with PI Turkey, the Privatisation Administration (PA) said in a statement.

Investors submitted offers in closed envelopes and will be asked to raise bids in an auction broadcast live on television, for which no firm date has been set yet, a PA official said.

Japan Tobacco (2914.T: Quote, Profile, Research) -- which offered $1.15 billion in 2003 before Ankara cancelled the tender, saying bids were unsatisfactory -- did not bid this time. Japan Tobacco is the world's third largest cigarette group after Marlboro-maker Altria (MO.N: Quote, Profile, Research) and BAT.

Turkey, a European Union candidate, is the eighth-biggest cigarette market in the world, with Turks smoking 115 billion cigarettes a year.