ANKARA, Turkey, Nov. 11 (UPI) -- Turkey reportedly dropped its plans Tuesday to sell its state-owned tobacco company to Japan Tobacco International.
The BBC said the leading $1.15 billion bid by Japan Tobacco was deemed too far below the Turkish government's expectations.
Turkey wants to raise $4 billion in asset sales by next year, and was expecting up to $3 billion from the sale of its tobacco business.
The BBC reported the abandoned privatization plan is a setback to reforms undertaken as part of a $16 billion loan agreement with the International Monetary Fund.
The Turkish cigarette company, Sigara Sanayi Isletmeleri, has a more than 50 percent share of the world's sixth largest cigarette market.
The state monopoly Tekel, which also trades in alcohol and salt, reported 2002 revenue of $2.8 billion, with up to 77 percent of which was generated by its cigarette division.
The BBC said global giants are thought to have lowered their bids because of perceived problems with regulation and Turkey's operating environment.
