Turkish Billionaire Dogan Plans to Enter Investment Banking

(Bloomberg) -- Turkish billionaire Aydin Dogan is planning to enter investment banking after exiting consumer lending 14 years ago and breaking up a media empire that once put him in running battles with President Recep Tayyip Erdogan.

Dogan Sirketler Grubu Holding AS will either buy an existing investment bank or apply for a license to start one, according to people with knowledge of the matter, who asked not to be identified as the matter is private.

Dogan Holding confirmed in a public filing on Tuesday that investment banking is a sector that it’s looking into. Shares opened flat in Istanbul after jumping as much as 5.1% on Monday, the most since July 30. The stock has risen 40% this year.

The 82-year-old’s holding company, which has interests in energy, real estate and tourism, is seeking to return to an industry it is familiar with. The group in 1994 bought Disbank and then sold it 11 years later to Fortis Bank NV, which itself was later acquired by French-lender BNP Paribas SA. The company will use a cash pile built up after exiting its media assets.

Dogan Holding last year hived off its media businesses for $893 million after coming under criticism from Erdogan as representing “old Turkey,” a term that refers to the secular elite who once dominated Turkish politics, culture and business. In 2009, the firm got a $3.3 billion tax fine, which started the sale and closure of several newspapers.

To contact the reporters on this story: Asli Kandemir in Istanbul at akandemir@bloomberg.net;Kerim Karakaya in Istanbul at kkarakaya2@bloomberg.net

To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels

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