Bahrain Telecommunications Company (Batelco) has begun talks with the UK’s Cable & Wireless Communications (CWC) for a potential $1bn deal to acquire several of its small telecoms operations.

The deal would include CWC operations in Monaco, the Maldives, Seychelles and the Falkland Islands. Both sides have said talks are at an early stage and may not necessarily end in a deal.

Like many regional telecoms firms, Batelco is trying to expand in foreign markets as domestic growth slows. In late 2011, its attempt to acquire Zain Saudi Arabia collapsed because of problems overcoming the Saudi firm’s debts.