Telenor reached a deal with Weather Investments over its holding in VimpelCom, which will see it ending its dispute with co-shareholder Altimo. However, the company also said it is now taking action against Unitech Limited, its partner in troubled Indian joint venture Uninor – starting a search for a “new Indian partner.”

In a statement, Telenor said it has bought US$374.4 million worth of VimpelCom shares from Weather, increasing its voting share to 36.36 percent – which Jon Fredrik Baksaas, Telenor’s CEO (pictured), said gives it “approximately the same voting position as a successful outcome of the arbitration process would have achieved.”

It is also now the biggest single shareholder in VimpelCom in voting terms, ahead of Altimo on 25 percent – the companies have 31.67 percent and 31.35 economic stakes, respectively.

Significantly, Telenor has also entered into “certain put and call arrangements” regarding the 71,000,000 VimpelCom preferred shared held by Weather. The purchase of these would give it an additional 18.28 percent voting right, taking it well above the 50 percent level.

Telenor also said it is seeking “indemnity and compensation” following the cancellation of Uninor’s 22 licences by the Supreme Court of India. It said that the legality and validity of the licences was a “fundamental term of the share subscription agreement between Telenor Group and Unitech.”

Telenor is also making a claim against its partner for “the failure to obtain spectrum in the strategically critical Delhi circle.”

In a statement, Telenor said that it will “consider every option available to secure the continued successful development of its mobile services in the country.” It said that its partnership with Unitech “does not have a future,” and it is therefore starting the search for a new Indian partner.

Telenor said it has invested INR61 billion (US$1.23 billion) for its 67.25 percent ownership of Uninor, and is also fully guaranteeing INR80 billion of debt. It last week recorded a charge of US$712 million related to a revaluation its Indian business.