The ultimate controlling shareholder of construction firm Paul Y-ITC is expected to sweeten the offer on a controversial proposed acquisition in a bid to garner independent shareholders' support, according to sources. Charles Chan Kwok-keung aroused concerns earlier this month after he proposed to buy Paul Y's non-core assets at a 90.1 per cent discount to their book value. If the deal were to go ahead, Paul Y's parent ITC Corp would incur an HK$809 million loss. Paul Y would have seen its profit drop by HK$50.5 million had the deal taken place last year. Sources familiar with the situation said yesterday the deal structure would be changed, but declined to reveal details, saying the new terms were still under discussion. An announcement is not expected until tomorrow at the earliest. Shares in Paul Y and ITC were suspended from trading yesterday, pending announcement of an alternative proposal. Under the original proposal, Mr Chan, who owns 34.82 per cent of ITC, would make a cash offer to buy Paul Y assets that are unrelated to its core business. These include a 14.55 per cent stake in China Strategic Holdings and some property interests. Mr Chan would offer Paul Y's independent shareholders 20 HK cents per share in exchange for the assets. The same cash offer would also be made to ITC's independent shareholders should the firm elect to sell its interest in the assets to Mr Chan. The 20 HK cent cash offer represents a 5.66 per cent discount to the closing price of 21.2 HK cents the day before the proposal was announced. However, it represents a 90.1 per cent discount to the net book value of the assets. Paul Y last closed at 21 HK cents on Tuesday. Paul Y said the proposed deal originated from Mr Chan and not its board, and conceded the offer price might not be fair compared to the assets' net book value.