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| Telenor seeks compensation from Unitech, eyes new Indian partner |
| [15.02.2012, 05:17pm, Wed. GMT] |
Norwegian telco holds Unitech liable for cancellation of all 22 of its mobile licences. Norwegian telecommunications firm Telenor ASA Wednesday said it will look for a new partner in India and seek compensation for lost mobile licenses there from its current strategic partner Unitech Ltd., following the cancellation of such licenses by an Indian court earlier this month. Telenor's Indian joint venture, Unitech Wireless, which operates under the brand name Uninor, last week was ordered to return all 22 of its mobile licenses in the country.The Indian Supreme Court concluded an auction to distribute 122 licenses in 2008 was rigged and underpriced.
Telenor said it holds Unitech liable for the breach of warranties related to the cancellation and will seek compensation for all investment, guarantees and damages caused by the court's decision. Telenor said Unitech agreed as part of a share subscription agreement to protect Telenor against damages suffered as a result of breached warranties.
Click here to find out more!"The legality and validity of the licenses was a fundamental term of the share subscription agreement between Telenor Group and Unitech Limited. We believe that the Supreme Court's cancellation of the Unified Access Service Licenses conclusively demonstrates a clear breach of Unitech's warranties," said Telenor's Group General Counsel Pal Wien Espen in a statement.
The company said it will consider every option available to continue development of mobile services in India.
"It is Telenor Group's position that the strategic partnership with Unitech Limited does not have a future, and it therefore will start the process of looking for a new Indian partner," it said.
Telenor has invested 61 billion rupees ($1.24 billion) for 67.25% ownership in Uninor, and guaranteed INR80 billion of short-term debt.
At 1605 GMT, shares in Telenor were up 3.8% at NOK101.40, outperforming a rise in the broader Nordic index.
(Dow Jones Newswires)
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