its long-running ownership battle with rival Swedish firm, ICB Shipping.

Frontline launched a more than $400-million hostile take-over bid for ICB in September.

But this week the two companies failed to reach agreement on a new offer involving a financially intricate ships-for-shares deal, the Financial Times reported yesterday.

Frontline has already acquired 51.7 percent of ICB's capital, but its buy-out bid has stalled over its failure to secure a majority of the Swedish firm's voting rights, and, by ICB's declaration of a $309-million agreed merger with Greek-owned Astro Tankers.

Frontline earlier this year dropped a cash offer for ICB and launched a lawsuit that claimed the proposed merger with Astro was illegal.

It led to a deadlock in discussions until last month when Frontline sought to break the impasse by offering its shares for four of ICB's 11-tanker fleet.

The deal was touted as viable, because it would allow the Astro merger to go ahead.

This week Frontline, which is an Oslo-listed company, said that it was terminating talks and would block any merger agreement between ICB and Astro.

ICB chief executive, Ola Lorentzon, blamed the breakdown on disagreements over asset valuations and Frontline's imposition of a deadline for the finalising of the deal.

The talks broke down over matching asset valuations for the ships Frontline wanted against the value of ICB Class B shares.