Asia's second-largest foreign telecoms operator, Telenor has scrapped its plans for a share issue to fund an Indian mobile operator, Unitech Wireless, following stiff opposition from shareholders. The firm said that it has also stopped dividend payout for 2008 and
2009.

The Norwegian telecom operator said that it would now arrange funds through debts and other financial modes. It has signed a loan worth Rs 8 billion Norwegian Krone that would be used to finance the Unitech Wireless deal.

The firm said in a statement, "It is clear that this will be financed with short-term debt -- and in today's market, that will not be cheap but it will give a positive effect for current shareholders."

It should be recalled that Telenor had stunned the business world by acquiring 60 percent stake in Unitech Wireless, a telecom subsidiary of Indian Reality giant, Unitech Ltd. earlier this year.

The Chief Financial Officer of firm, Trond Westlie said, "We are taking into consideration the feedback we have received. This is a considerably better option for shareholders than a rights issue."

Shares of Telenor ended less than 1 per cent lower at NKr 46.15 following the recent announcements by the company.