Meanwhile, president Jon Fredrik Baksaas has insisted that its cellular-business investment in Thailand has complied with foreign-ownership laws. Thai officials are investigating companies suspected of acting as nominees for foreign investors.

Telenor's Bangkok office is under the charge of deputy chief executive Arve Johansen, whose main role is to coordinate its cellular businesses across Asia.

Baksaas said Telenor had a long-term commitment to the Asian market. Its number of Asian subscribers is expected to reach 90 million within the next three years.

Telenor, which has 105 million mobile-phone customers in 13 countries, set foot in the Asian market 10 years ago. It now has more than 30 million subscribers in Thailand, Bangladesh, Malaysia and Pakistan.

Singapore-listed DTAC has 11.2 million subscribers.

Telenor became the strategic partner

of DTAC and its parent United Communication Industry (Ucom) in 2000 by acquiring a 24.8-per-cent share of Ucom and a 30-per-cent stake in DTAC through its subsidiary Telenor Asia.

In a complex set of transactions last October, it gained a bigger stake in its local partners. Thai Telco Holdings, Telenor Asia's 49-per-cent-owned affiliate, bought a 39.9-per-cent stake in Ucom in a deal worth Bt9.2 billion.

Currently, Thai Telco owns 42.4 per cent of Ucom, while Telenor Asia holds 47 per cent.

Ucom owns a 43.1-per-cent stake in DTAC, while Telenor Asia owns 32.6 per cent. Foreign shareholdings in Thai telecom companies are limited by law to 49 per cent.

If defined as a nominee, Ucom could be ordered to cut its relationship with its shareholders and such a ruling could also affect new telecom licences.

The Commerce Ministry's investigative committee has recently expanded its probe of companies suspected of acting as nominees for foreign investors to cover 16 more firms, including Thai Telco Holdings and Ucom itself.

Originally, the probe covered Kularb Kaew, Cedar Holdings, Aspen Holdings and Cypress Holdings, all of which were directly or indirectly involved with Singapore's Temasek Holdings in its takeover of Shin Corp in January.

Sirivish Toomgum

The Nation