Telenor 1Q Net Profit Falls 65 Percent

"Telenor regards the claim to be unfounded, and expects to be fairly treated by higher courts," Baksaas said.

The Norwegian group's net profit for the first quarter was dragged down by losses from associated companies, including VimpelCom, of 199 million kroner ($30.4 million) this year compared to a profit of just under 3 billion kroner a year earlier.

Telenor said its losses for VimpelCom were estimates, since it does not have access to detailed accounts because of the law suit.

Baksaas said another key development in the first quarter was completion of the first phase of a $1.2 billion deal to buy 67.25 percent of India's Unitech Wireless, giving Telenor a foothold in the world's second largest mobile telephone market.

Telenor operates worldwide, with about 150 million subscribers and a work force of about 38,000 people.

The group's shares were up 0.8 percent at 40.40 kroner ($6.17) in morning trading on the Oslo bourse.

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