UAE-based operator Etisalat is reportedly looking to sell its stake in Indonesian operator PT XL Axiata following a breakdown of relations with the operator’s majority owner, Malaysia-based Axiata.

According to sources at Reuters, Etisalat is looking to raise between US$600 million and US$700 million this year from the sale of its entire 13.29 percent stake, possibly via an equity placement. The UAE firm has reportedly hired JPMorgan and Morgan Stanley to handle the sale. However, neither the operators nor banks named were prepared to comment.

"Etisalat thinks it hasn't been treated well in this deal… the reality is that the relationship soured a bit with the new management of Axiata," said a source. “"They have never been able to find a way to work together in four years."

Etisalat bought its stake in the Indonesian number-three in 2007 for US$440 million as part of a strategy to expand into Southeast Asia.

According to the latest Wireless Intelligence data, PT XL Axiata had 46.4 million subscribers in Indonesia in Q4 2011, behind market-leader Telkomsel (107 million) and second-placed Indosat (51.7 million).