Global investors showing interest in Turkish firms

Turkey is an active target for merger and acquisition investors, especially now that financial markets are recovering from the global crisis, said Ilhami Koc, the CEO of Turkey's biggest broker, Is Yatirim (Is Investments), yesterday. Investors from India and Egypt are among those considering buying stakes this year in Turkish energy, retail, food and pharmaceutical companies, he added. Istanbul-based Is Yatirim conservatively expects at least $16 billion of mergers and acquisitions this year, compared with $25.8 billion in 2010. Turkish assets have lured domestic and international investors as the country's economy last year outpaced every member of the G20 nations except for China. Turkey's economy grew at an annual rate of 8.9 percent in the first three quarters, and it probably expanded 8 percent for the year overall, the International Monetary Fund said. Koc foresees that Turkey will be raised to investment grade by international rating companies this year. "It may happen before the (summer general) elections," he said. Standard & Poor's and Moody's rate Turkey's long-term foreign currency debt at BB and Ba2 respectively, two notches below investment grade. Fitch's rating of BB+ is one notch below.