Kuwait's Zain in talks for stake in PalTel

(Adds details, background)

KUWAIT, Jan 28 (Reuters) - Kuwait's Mobile Telecommunications Co (ZAIN.KW) (Zain) said on Wednesday it was in advanced talks to become a strategic partner in Palestinian operator Palestine Telecommunication Company (PalTel).

PalTel operates in the West Bank and Gaza Strip.

"We are in advanced talks and could conclude a deal soon," said a Zain spokesman, declining to say if Zain wanted to buy a majority stake as it usually does when entering new markets.

Kuwait's biggest mobile operator, which is spending billions to expand and now operates in 22 countries in the Middle East and Africa, gave no more details in a statement.

The Palestinian Securities Exchange said in a statement it had suspended trading on Paltel at Paltel's request until the merger was completed.

A second Palestinian mobile network, Wataniya, is expected to come into operation this year. Wataniya is owned by Qatar Telecommunications Co. QTEL.QA and the Palestinian Authority's Palestinian Investment Fund.

(Reporting by Ulf Laessing and Andrew Hammond in Ramallah; Editing by Lin Noueihed)

((ulf.laessing@reuters.com ; +965 224 603 50; Reuters Messaging: ulf.laessing.reuters.com@reuters.net ))

(C) Reuters 2009. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nLS163644