By R. Jai Krishna
NEW DELHI--Unitech Wireless Ltd., majority-owned by Norway's
Telenor ASA (TEL.OS), said Monday the Delhi High court has allowed
it to proceed with a proposed auction of its assets in India.
Telenor owns 67% of Unitech Wireless, a joint venture in which
Indian property developer Unitech Ltd. (507878.BY) holds the
remaining stake. Telenor wants Unitech to exit the venture as the
partnership has soured. The partners are divided over the valuation
of the assets.
Last Wednesday, Unitech Wireless invited bids for the auction of
the assets, ignoring opposition from Unitech. The Indian partner
obtained a stay on the auction process from the Company Law Board
on Friday.
Unitech Wireless challenged the law board order in the high
court.
The Company Law Board, a quasi-judicial body that decides on
corporate disputes, is scheduled to hear the case on Wednesday.
Unitech Wireless had set Monday for the submission of initial
bids from prospective buyers.
Telenor and Unitech weren't available for immediate
comments.
The partnership ran into trouble after the Supreme Court of
India in February canceled as many as 122 telecom licenses,
including the 22 Unitech Wireless held, citing irregularities in
its 2008 allotment. Telenor bought the stake in Unitech Wireless
after the Indian company got the licenses.
Telenor and Unitech Wireless, which offers mobile services in
India under the Uninor brand, had said an open auction will remove
any dispute around the valuation of the business. The Oslo-based
company said it would form another Indian company and bid for the
assets in the proposed auction.
Unitech said it didn't approve of the auction proposal.
Write to R. Jai Krishna at krishna.jai@dowjones.com
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