Norwegian telecommunications operator Telenor announced it didn't break the law when setting up a joint venture to increase its control over Thailand's DTAC mobile phone operator, a Dow Jones report said.
"We are confident that we're abiding by local rules and regulations in Thailand,' a Telenor spokesperson, quoted by the Dow Jones report, said.
The Dow Jones report said the comments follow news that Thailand's ministry of commerce will conduct an investigation into 16 local and foreign companies, including Telenor, to determine whether foreign shareholders have used nominees to sidestep limits on foreign holdings in Thai companies.
Under Thai laws, foreigners can't hold more than 49% in local firms of certain industries such as telecoms and aviation, the Dow Jones report said.
Telenor holds a 33% direct stake in DTAC, but also has a 25% stake in United Communication Industry, which in turn controls 42% of DTAC, the report said.
It also owns 49% of Thai Telco Holdings, which has a 40% stake in United Communication, it added.
The investigation comes ahead of national elections following the family of Prime Minister Thaksin Shinawatra's sale of a controlling stake in telecoms holding company Shin to Temasek Holdings, the report said.
Temasek allegedly used proxy shareholdings to keep its holdings in Shin below the 49% limit, the Dow Jones report further said.