Plans by Norway's Telenor to withdraw from Myanmar by selling its telecom operations there to a Lebanese firm have stalled after the junta indicated it favoured at least part-ownership by a local company, Reuters reported.

Telenor, one of the biggest foreign investors in Myanmar, announced in July it was selling its local operations to M1 Group for $105 million.

M1, an investment firm owned by the family of Lebanese Prime Minister Najib Mikati, is in advanced talks about a partnership with at least one Myanmar company - Shwe Byain Phyu Group which has interests in petrol stations and gem mining, according to the report.