Norway's Telenor said on January 05 it is concerned about the potential impact of an ongoing telecom corruption scandal in India on its fledging mobile operations in the Asian superpower.
Telenor's Chief Executive Jon Fredrik Baksaas also told Reuters that he remains pessimistic on the merits of Vimpelcom's deal to buy control of Orascom and Italy's Wind from Egyptian tycoon Naguib Sawiris' Weather Investments. Telenor holds a strategic stake in Russia's Vimpelcom. Asked if he was concerned that Telenor operations might be affected or damaged by the Indian 2G mobile license scandal, Baksaas said: "Of course that is something we are concerned about. We are working to give our views and bring clarity on our role, position and intentions in the Indian telecom market."
Baksaas said India's reputation as a good place for foreign investment may be damaged if the row continued for a long time. "If this kind of unclear situation is not resolved in a reasonable time horizon it will hamper investments from here onwards," he told Reuters on the sidelines of an industry conference in the Norwegian capital.
Baksaas reiterated Telenor's negative evaluation of Vimpelcom's deal with Weather, adding that "there are other (Vimpelcom) shareholders that share the same opinion."
He declined to comment on any ongoing talks between Vimpelcom and Weather after Telenor voted against the previous agreement between the two at Vimpelcom board meeting last month.
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