Supreme Court verdict brokers peace between Unitech & Telenor

Joint venture partners to meet to decide on future course, leaders of two companies to meet soon. Manoj Gairola reports. Putting Humpty & Dumpty together again

The Supreme Court verdict ordering the cancellation of 122 licences for 2G telephony has brought together Unitech Ltd and Telenor, the warring partners of Unitech Wireless (Tamil Nadu) Pvt. Ltd., which operates GSM services under the Uninor brand.

The two companies have put their differences on backburner and are jointly working towards a strategy to come out their trouble, industry sources said.

Telenor says the verdict was unfair. Sigve Brekke, a Telenor nominee in the Unitech Wireless board and its managing director and Sanjay Chandra, Unitech’s managing director, will soon meet to discuss the venture’s future, the sources said.

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The two companies are at loggerheads over a proposed rights issue to raise Rs 8,500 crore. Telenor wants it to fund expansion, while cash-short Unitech says it is not in the venture’s interest.

Telenor owns 67.25% in Unitech Wireless, while Unitech holds the remaining 32.75%.