SILIVRI, Turkey—A Turkish court acquitted a prominent businessman who faced the prospect of a life prison sentence for allegedly colluding to overthrow President Recep Tayyip Erdogan’s government in 2013, a surprise ruling that elicited long applause in the courtroom and impromptu celebrations in Istanbul.

Hours later, however, Turkish prosecutors issued an order to further detain the businessman, Osman Kavala, as part of a probe into whether he played a role in the failed coup against Mr. Erdogan in July 2016.

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