Unitech and Telenor come to blows (again)

26 Jul 2012

The two joint venture partners in beleaguered Indian cellco Uninor, Unitech Ltd and Telenor of Norway, have become embroiled in another legal battle over the future of the company, the Economic Times reports. Unitech has written to the Foreign Investment Promotion Board (FIPB) to block a move by its partner to raise capital for Uninor through a rights issue, saying that its representatives had not approved the decision. Uninor was looking to raise some INR12 billion (USD213.42 million) to cover its operational and capital expenditure. Unitech claims that the suggestion that its nominee directors on the Uninor board had given the green light for the rights issue was ‘wrong and a misrepresentation of facts,’ adding that ‘the issue of rights offer was not even an agenda item in the meeting dated 23 May.’ Unitech went on to accuse its Norwegian partner of attempting to indirectly introduce a new partner into the company, noting that the ongoing dispute between the two companies over the future of Uninor was due to go to the next stage of arbitration on 24 September, in Singapore.

India, Telenor India