HELSINKI NokiaNOK1V.HE has asked the Delhi High Court to help release its Indian factory after its seizure by the local tax authorities, the Finnish firm said on Thursday as it seeks to resolve the tax dispute ahead of the sale of its mobile phone business to Microsoft (MSFT.O).
Nokia said it did not expect the dispute to affect its 5.4 billion euros deal with Microsoft, although it was prepared for the possibility that the Chennai plant, one of its biggest phone-making factories, will not be transferred to the U.S. company in time for the sale, which is due to close in the first quarter of next year.
If the seizure is still in place when the Microsoft deal is finalised, Nokia could briefly operate the plant as a contract manufacturer for Microsoft, according to sources close to the company.
Nokia has been in disagreement with the Indian authorities over an income tax bill of 20.8 billion rupees, one of several tax disagreements involving foreign companies in India.
In a statement, Nokia said it wanted the assets to be released by December 12. The sources said the court will hold a hearing on November 28.
($1=0.7428 euros) ($1=62.5450 rupees)
(Additional reporting by Devidutta Tripathy in New Delhi; Editing by Greg Mahlich)
Lumbering state companies become hot stock market bet
MUMBAI India's state-owned companies, from builders such as NBCC to oil firms such as Bharat Petroleum Corp Ltd, are attracting top investors as cheap valuations, improving earnings, and share buybacks make them stand out in an otherwise expensive market.
More U.S. retailers probing Welspun India over alleged phony Egyptian cotton
CHICAGO/NEW DELHI U.S. retailer Bed Bath & Beyond on Wednesday said it ordered an external audit of textiles from Welspun India, after Target Corp last week accused the Indian manufacturer of passing off cheap sheets as premium Egyptian cotton for two years.
India to receive normal rains, not surplus, as La Nina chances fade
MUMBAI/NEW DELHI India will receive normal rainfall over the 2016 monsoon season, not surplus as previously expected, with the chances of a La Nina weather pattern emerging over the period seen as unlikely, three senior officials at state-run weather department said.