Morocco's Meditel plans 25 pct listing this yr-papers

* FinanceCom Chairman Benjelloun okays stake sale - paper

* Arab Gulf firms named among interested buyers

RABAT, Sept 26 (Reuters) - Morocco's No.2 telecommunications firm Meditel is planning to list a stake of more than 25 percent on the local exchange before the end of this year, three Moroccan dailies reported on Saturday.

Meditel's owners, FinanceCom and state fund CDG, aim to sell the stake to institutional investors likely to be telecoms firms from Egypt, Bahrain or United Arab Emirates, Al Jarida Aloula, Al Massae and Akhbar Alyoum newspapers reported.

"Othman Benjelloun had okayed on Thursday (during a board meeting) the plan to list Meditel on Casablanca bourse. The demand for the partial flotation will be submitted to the bourse CDVM watchdog in the next few weeks," Akhbar Alyoum reported, citing unnamed sources at conglomerate FinanceCom group, which is owned by Benjelloun.

The newspapers named Emirates Telecommunications Co ETEL.AD, Bahrain Telecommunications BTEL.BH (Batelco) and Egypt's Orascom Telecom (OT) (ORTE.CA) among several foreign companies said to be interested in buying a Meditel stake.

Officials at CDG and FinanceCom were not immediately available to comment on the reports.

The three newspaper reported Meditel sought to increase its capital through the partial flotation.

FinanceCom and state fund CDG equally own Meditel after buying stakes from Portugal Telecom (PTC.LS) and Spain's Telefonica (TEF.MC) for 800 million euros ($1.15 billion) this month. [ID:nL1569344]

The two groups have said they are open to sell a stake directly to a telecoms operator or list shares on the bourse. [ID:nL1208566]

Meditel competes with Maroc Telecom (IAM.CS) and Wana, the telecommunications arm of Morocco's biggest conglomerate ONA ONA.CS.

Local analysts say Meditel needs to bring in a strategic investor as a shareholder to tackle fierce competition with Maroc Telecom and Wana. (Reporting by Lamine Ghanmi, Editing by Sue Thomas)