HSBC will examine all options, including full and partial divestment of the government's 37 per cent stake in Batelco. The UK's Cable & Wireless (C&W) owns the second largest stake, of 20 per cent. Members debating the proposed sale in the National Assembly (parliament) in late March called on MoFNE to retain a stake in the company and urged the ministry not to allow C&W to increase its share. However, the government is not obliged to put its preferred option to a parliamentary vote.

Batelco, which has been exposed to competition in the local market since December, posted full-year 2003 net profits of BD 60.7 million ($160 million), up by 4.5 per cent from 2002. Shareholders' equity stood at BD 283.7 million ($746.5 million) at the end of December 2003 (MEED 5:3:04).