The Turkish corporation, ‡ukurova, is in talks to acquire a large stake from a minority shareholder in Zain, the Kuwaiti telecoms operator.

The move probably thwarts a record-breaking $12bn bid from Etisalat of the United Arab Emirates.

‡ukurova is in discussions with Al-Fawares Holding, a Kuwaiti company that owns 4.5% of Zain and which opposes the bid from Etisalat, a state-owned telephone company.

The talks initially involved ‡ukurova buying a 29.9% stake in the Kuwaiti operator for US$6.1 billion, but Sheikh Khalifa Ali Al-Sabah, who represents Al-Fawares on Zain’s board, stated that the proposed price and the stake size had changed. There is progress, but there is no binding agreement of any sort, and they are also talking to other interested parties.

The ‡ukurova group, owned by billionaire Mehmet Emin Karamehmet, has a controlling stake in Turkcell but also has interests ranging from media to shipbuilding and oil exploration. The bid for Zain would be a bold move for Mr Karamehmet, who already needs to raise $8 billion to finance the acquisition of Turkish power distribution grids, auctioned at record prices last year in privatizations now under scrutiny from Turkey’s competition authorities.

Turkcell claimed that it had no involvement in the talks. This reflects the relative maturity of the largest markets within the region, the limited growth prospects and the stable cash flow generation of the mobile telecoms sector.

If Etisalat completes its deal with Zain, it will represent the biggest Middle East deal on record.