DUBLIN, Ireland-The majority backers of Portuguese Universal Mobile Telecommunications System (UMTS) hopeful OniWay have decided to pull the plug on the venture. However, two other shareholders-Telenor, which controls 20 percent, and Spanish utility Iberdrola with 8 percent-have refused to support the decision.
A Telenor spokesperson said Telenor does not accept the conditions of the sale and added that while the company could not stop the majority shareholder EDP from selling its 68 percent, Telenor can hold onto its 20 percent.
This revolt by the two smaller shareholders follows reports in the Portuguese media last month that Telenor and Iberdrola wanted OniWay to be suspended until market conditions improved. The companies are unwilling to commit themselves to the additional investment required to wind down the operator.
EDP wants to sell OniWay’s assets to the other third-generation (3G) license holders Vodafone Telecel, TMN and Optimus for around US$160 million. Almost US$500 million has been invested in the business, which was due to launch a General Packet Radio Service (GPRS) service before the end of the year.
EDP Chief Financial Officer Rui Horta e Costa said any effort to block the sale would require a two-thirds majority vote, effectively dismissing any chance of the disposal of assets being stopped.
