Telenor’s aggressive plan to enter the rich Indian mobile market by taking 60% shares in Unitech (a start-up mobile operator) is facing strong opposition back at home. Telenor is said to finding alternates to complete its plan.
The day Telenor unvieled its plans to buy 60% shares in Unitech India, its share price fell by 26%. Then, the shareholders have put forward a strong opposition to its plans of a Rights Issue of $1.8bn. There was a political pressure as well on the 54% share holder, the Norwegian Government. During one year, the Telenor has faced a 70% decline in its share prices which is under pressure due to the global financial crisis effecting its sales and revenues. The share holders have very strong concerns on a rights issue under these conditions. Telenor’s CEO told Financial Times that they are considering on alternates to collect funds for Unitech investment like selling assets, cutting dividends or reducing capital spending.
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