By Birsen Altayli and Daren Butler
ISTANBUL (Reuters) - Turkish food producer Yildiz Holding on Monday dismissed media reports that sparked concerns that it has become a target in a government crackdown against the cleric Ankara blames for a failed coup in July.
Yildiz, which calls itself the largest food manufacturer in central and eastern Europe, the Middle East and Africa, owns a portfolio of international brands that includes Godiva chocolate and McVitie's biscuits.
Shares of three of its companies, biscuit maker Ulker, investment fund Gozde Girisim and food wholesaler Bizim, fell more than 12 percent on Monday.
Following an article in the pro-government Sabah newspaper, analysts cited concern that Yildiz was next in line in the purge, in which more than 110,000 people have sacked or suspended and more than 36,000 arrested.
Although the article did not name Yildiz, it alleged a link between an unnamed company and a group previously seized by authorities over suspected ties to the cleric, Fethullah Gulen.
Market participants said the unnamed company was widely believed to be Yildiz. "(The) article which appeared in Sabah daily might have caused the sharp sell-off," brokerage TEB Investment said in a note to clients.
In a statement, Yildiz said a news report had targeted the group's companies, saying it had "nothing to do" with such an investigation and called a second report on news website odatv.com "unacceptable".
Turkey blames Gulen for orchestrating the failed July 15 coup, when rogue soldiers commandeered tanks, fighter jets and helicopters to attack the parliament and attempt to overthrow the government.
Gulen, who has lived in self-imposed exile in the U.S. state of Pennsylvania since 1999, has denied involvement and condemned the coup.
The scope of the crackdown, which started in the civil service and then spread to the private sector, has worried Turkey's Western allies.
Critics say that President Tayyip Erdogan is using the purges to curtail dissent and tighten his grip on power. The government says the moves are necessary to root out Gulen's followers.
The Yildiz companies were the three biggest percentage decliners on the BIST 100 index (XU100), continuing their slide after the firm's denial. Bizim fell 13 percent, Ulker dropped 12 percent and Gozde Girisim lost 11 percent. The index lost 1 percent by 1150 GMT, with Ulker the biggest drag.
(Additional Reporting by Akin Aytekin; Writing by David Dolan; editing by John Stonestreet) OLGBWORLD Reuters UK Online Report World News 20161114T123645+0000