BAT hopes to strike lucky in Turkey bid

All eyes will be on the box this lunchtime as Turkey auctions off its state-owned tobacco firm Tekel Cigarette, with bids starting at more than $1bn (£513m) live on television.

Four sealed bids were received on Monday and reports claim they ranged between $1bn and $1.5bn. But the final round of bidding is to be shown live on TV to avoid any claims of corruption.

BAT, the London-based maker of Lucky Strike Cigarettes and 555, is bidding, as are British private-equity group Cinven, Turkish conglomerate Dorgan and a Turkish building company backed by Morgan Stanley private equity.

Turkey is seen as a key country for tobacco manufacturers because the rapid growth of Philip Morris, with 43% of the market, indicates smokers are switching from domestic brands to international ones like Marlboro.