RPT-UPDATE 2-Five firms interested in Turkey's ATV-Sabah-source

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By Ercan Ersoy

ISTANBUL, Sept 24 (Reuters) - Five media companies including RTL Group and Rupert Murdoch's News Corp are interested in buying Turkish media firm ATV-Sabah at auction in November, an official at the body selling the firm told Reuters on Monday.

The official at Turkey's State Deposits and Insurance Fund (TMSF), which seized the assets making up ATV-Sabah in April, said Germany's ProSiebenSat.1 , Prague-listed CME and unlisted Greek broadcaster Antenna TV had also bought the $50,000 documents necessary to take part in the tender.

ATV-Sabah is a new structure including top-rated entertainment channel ATV, major daily Sabah, smaller newspaper Takvim and other publications. The TMSF has set a minimum price of $1.1 billion for the Nov. 7 tender and the final date for prequalification is Oct. 15.

RTL, Europe's biggest commercial broadcaster, and ProSiebenSat.1 declined to comment on the sale and no one was available to comment at CME. News Corp had told Reuters earlier this month it was considering a bid.

Foreign companies will have to find local partners to bid with as a law limits foreign ownership of broadcasters to 25 percent. The official said the fund would be alert to any attempts to circumvent the law.

"The TMSF ... is going to be very careful about devious operations. Bogus companies will not be allowed through," the official said, noting the tender conditions specify that 75 percent of the buying company's capital must also be local.

The sale is expected to be completed in January 2008, after competition and other authorities give their approval, he said.

ATV, Sabah and other assets were seized from one of Turkey's leading businessmen, Turgay Ciner, in April as the TMSF said secret agreements between Ciner and the previous owner had come to light.

The sale coincides with plans at No.3 media group Cukurova to sell a stake in its media business, sources familiar with the plans have said, and both sales are expected to shake up a sector long dominated by Dogan Yayin Holding .

The TMSF, whose job is also to take over troubled companies and banks, passes its revenues onto the Treasury once it has paid outstanding debts.

Media is seen as one of the most attractive sectors in fast-growing European Union candidate Turkey, because of a large, young population and increasing consumer demand.

News Corp is already present in Turkey with television and outdoor advertising businesses. (Additional reporting by Nicola Leske in Frankfurt)

Keywords: ATVSABAH BIDDERS

Keywords: ATVSABAH BIDDERS