* Collateral to appeal $3.3 billion tax fine rejected
* Authorities freeze share sale rights
* Dogan Yayin shares fall 8 percent
(Adds details, background, reaction)
ISTANBUL, Oct 13 (Reuters) - Turkey's tax authority rejected collateral provided by Dogan Yayin to fight a record $3.3 billion tax fine, raising the stakes in a bitter stand-off between Turkey's largest media company and the authorities.
The Finance Ministry's tax authority had, as a consequence, placed a preliminary injunction on the sale of shares in three of Dogan Yayin's units, a company spokesman said on Tuesday.
"Because Dogan Yayin's collateral was not accepted they made an injunction," the spokesman said.
Government sources, who declined to be named, told Reuters the authorities may now seize Dogan Yayin units if so desired. The sources also said Dogan Yayin had the right to appeal the rejection of the collateral.
In a row that has raised concerns in the European Union which Turkey aspires to join, the dispute over alleged tax payment irregularities has put the spotlight on Turkey's commitment to press freedom and its taxation system.
Dogan Yayin, which controls half of the Turkish private media market, has accused the government of singling it out because of critical coverage of Prime Minister Tayyip Erdogan's government.
The government rejects this, but has in the past accused Dogan newspapers and television channels of acting like an opposition party.
Shares in Dogan Yayin fell 8 percent while parent company Dogan Holding, controlled by billionaire Aydin Dogan, traded down 6.5 percent, compared with a slightly negative Istanbul main share index. (Writing by Paul de Bendern; Editing by David Holmes)