Unitech jumps 6% as CLB OKs intl arbitration against Telenor

The Company Law Board has allowed Unitech plea to move a case on a dispute over its telecom joint venture with Norway’s Telenor for international arbitration in Singapore, the Norwegian company said on Thursday.

Untiech jumped six percent on winning the case against Telenor in the Company Law Baord. Telenor, however, will challenge CLB order in a higher court and has said it will transfer Uninor assets, employees and customers to the new company that it plans to establish.

The CLB dismissed Telenor’s plea opposing arbitration in the dispute. The order came over a cross petition filed by Unitech and Telenor against each other before the CLB. Telenor holds 67.25 pe cent stake in Uninor, whose telecom licences were among the 122 cancelled by the Supreme Court last month. Following the cancellation of licences, Telenor accused Unitech of breach of warranties and sought damages.

Unitech last month sought the Company Law Board’s approval to move the case to an arbitration panel.

“While (we) will now consider our next legal options, it is very clear that Telenor Group will do all that is necessary to secure the future of Uninor’s employees, customers and partners,” a Telenor spokesman told Reuters.

The joint venture operates under the Uninor brand name.

Agencies