Saudi firm Kingdom Holding and Bahrain's Batelco are still in talks to acquire a quarter-percent stake in telco Zain Saudi, the two companies said in separate statements on Tuesday.

Batelco joint $950 million bid for a stake in Zain Saudi has hit a snag over management rights, Reuters had reported on Sunday.

Kingdom, owned by Saudi billionaire Prince Alwaleed bin Talal, and Batelco said discussions to obtain a stake of Zain Kuwait in Zain Saudi would continue between the different parties concerned.   

'Negotiations between all concerned parties are still underway and all parties are committed to starting the due diligence process and to concluding this transaction successfully,' Batelco said in a statement.

Zain agreed to sell the 25 percent stake to Batelco and Saudi billionaire Prince Alwaleed bin Talal's Kingdom Holdings in March.

'Kingdom Holding Company (KHC) and Bahrain Telecommunication Company (Batelco) announce that all news surrounding the acquisition of 25 per cent of the stake of Zain Group in Zain KSA are unsubstantiated and speculative in nature. Negotiations between all concerned parties are still underway and all parties are committed to starting the due diligence process and to concluding this transaction successfully. Both KHC and Batelco will keep their respective shareholders and regulators informed of any material development,' said the Batelco statement. - Reuters and TradeArabia News Service