Telenor is seeking alternative financing for its acquisition of a majority stake in India's Unitech Wireless, after investors opposed a planned NOK12bn (USD1.7bn) rights issue aimed at financing the deal. The Nordic mobile operator has hired Deutsche Bank to evaluate alternative ways of financing the purchase, but says a rights issue remains an option.
The move sent Telenor's stock up 3% on November 26. Telenor's CFO Trond Westlie said last week investors in the firm preferred a reduced dividend to finance the Unitech investment. The firm plans to decide by mid-January whether it will proceed with the rights issue, Westlie said.
Telenor agreed to buy 60% of Unitech Wireless for USD1.1bn at the end of October. Unitech Wireless, part of the Unitech conglomerate, plans to launch its services by mid-2009.
StrategyEye's related companies: Telenor, Deutsche Bank AG, Unitech Wireless
