France Telecom is in discussion to acquire a minority stake in Iraq’s third-largest mobile phone operator, to expand in the Middle East.

According to sources, it was considering purchasing a stake in Korek Telecom, in a deal that give the Iraqi mobile operator an enterprise value of US$$1.5 billion. Although no deal has been finalized, France Telecom is interested in eventually securing a controlling stake in Korek.

The French telecoms group is looking for growth in emerging markets in Africa, the Middle East and Asia.

It is competing with two much larger groups: Zain, Iraq’s largest mobile operator, which has 11.8 million customers, and Asia Cell, the second largest, which has 7.9 million.

According to Stephane Richard, France Telecom’s Chief Executive has set a target of doubling the group’s revenue from Africa and the Middle East within five years.