Batelco reverses deal to take stake in CWC's Monaco unit

Bahrain's Batelco confirmed on Monday that it has agreed with Cable & Wireless Communications Plc (CWC) to unwind the previous transfer of a 25 percent shareholding in CWC's Monaco unit, Compagnie Monegasque de Communication.

In a statement, the Bahraini telco said CWC has re-paid $100m to Batelco and Batelco has transferred to CWC the 25 percent shareholding in CMC.

"All option arrangements between CWC and Batelco in relation to CMC have terminated," the statement said.

Attempts by Bahrain's Batelco to offset shrinking earnings at home by expanding abroad have run into trouble as parts of its biggest acquisition have fallen foul of regulators.

Lacking the firepower of Gulf rivals for multi-billion dollar deals, state-run Batelco bought CWC's Islands division for $570m in April.

But an agreement to acquire the firm's Seychelles operations for a further $110 million fell apart early this month after it failed to win regulatory approval, followed by the Compagnie Monegasque de Communication deal.

Batelco previously said the two parties had agreed to reverse the sale because Cable & Wireless did not expect to win the necessary approvals by next April.