JEDDAH: Saudi Arabia’s Etihad Etisalat (Mobily) has ended talks over buying a stake in fixed line operator Etihad Atheeb Telecommunications, the mobile firm said.

Mobily had via wholly-owned subsidiary Bayanat Al-Oula signed a memorandum of understanding with four of Atheeb’s founding shareholders in August last year to buy a controlling interest in the company.

Talks proved protracted and last month Mobily said it wanted to acquire a 20 percent stake in Atheeb through a rights share issue, but Mobily has now ended talks with these shareholders, a statement to the kingdom’s bourse said.

Atheeb, which has about 200,000 customers according to its website, has struggled to compete against former monopoly Saudi Telecom Co. and this week posted a loss of SR249 million ($66.4 million) for the 12 months ending March 31.

Analysts say the main attraction for Mobily was to acquire Atheeb’s landline license.

Bayanat, an earlier Mobily buy, has a fixed line data license so adding Atheeb could help Mobily offer packages of mobile and fixed broadband services and landline calls.