Telenor, which won rights to operate in six Indian zones in an auction earlier this month after its earlier permits were ordered to be revoked, is looking to take a majority stake in the merged entity, the source said.
The deal will see India's Tata Group cutting its stake in unlisted Tata Telservices, the country's No. 6 mobile phone carrier, said the source, declining to be named due to the sensitivity of the matter.
Japan's NTT DoCoMo, which owns a 26 percent stake in the company, will retain its holding in the combined entity, the source said.
Telenor and Tata Teleservices declined comment. NTT DoCoMo could not be immediately reached for a comment in Tokyo outside their business hours.
Telenor may not be able to avail of the benefit of adjusting Rs 1,658 crore licence fee it paid in 2008 for permits of its Indian venture Uninor in ...