Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997.

This case study provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market context. Members of each negotiating team are valuing a 20% equity stake being offered by three "selling" teams to three prospective "buying" teams representing different types of foreign investors.

Teaching Purpose: 1) Gain an appreciation for negotiating dynamics associated with the sale of state-owned enterprises in an emerging-market setting, and 2) understand the impact of political, industrial, and enterprise-specific factors on the value of a privatizing enterprise using discounted cash flow, comparables, and Monte-Carlo simulation methods. This case is intended to expose students to the realistic dynamics of a complex international privatization.

The case study comes with an Excel spreadsheet model for the valuation of the enterprise. Up to six separate negotiating parties are involved in this case (documents 2-7 above). The case study examines three different methodologies for appraising the value of privatizing enterprises like ANT. Those approaches include: 1) a discounted cash flow ("DCF") approach; 2) a comparable multiples approach; and 3) and a Monte Carlo simulation approach. Also included are a Note on Valuation of Privatizing Enterprises in Emerging Markets and teaching notes.

This case can be purchased from the Harvard Business School Publishing Web site. This case study includes the following documents:

1. The Privatization of Anatolia National Telekom: General Instructions for All Simulation Participants (HBSP Product # 9-801-431)
2. The Privatization of Anatolia National Telekom: ANT Confidential Instructions
   (HBSP Product # 9-801-432)
3. The Privatization of Anatolia National Telekom: BOW Confidential Instructions
   (HBSP Product # 9-801-433)
4. The Privatization of Anatolia National Telekom: CORA Confidential Instructions
   (HBSP Product # 9-801-434)
5. The Privatization of Anatolia National Telekom: EUTEL Confidential Instructions
   (HBSP Product # 9-801-435)
6. The Privatization of Anatolia National Telekom: NALI Confidential Instructions
   (HBSP Product # 9-801-436)
7. The Privatization of Anatolia National Telekom: TAD Confidential Instructions
   (HBSP Product # 9-801-437)
8. The Privatization of Anatolia National Telekom: Note on Valuation of Privatizing Enterprises in Emerging Markets (HBSP Product # 9-801-438 - not yet listed on site but can be ordered)
9. The Privatization of Anatolia National Telekom: Teaching Note
   (HBSP Product # TN5-801-439 - not yet listed on site but can be ordered)
10. The Privatization of Anatolia National Telekom: ANTVALUE.xls Spreadsheet
    (HBSP Product #______ - not yet listed on site but can be ordered)

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