The chairman of China Netcom Group (Hong Kong), which is planning a US$1.2 billion listing in Hong Kong and New York, on Wednesday admitted its parent company might not reach an agreement to buy PCCW's fixed-line assets.
Speaking from London to reporters in Hong Kong via video, Zhang Chunjiang said: 'The talks with PCCW are conducted by our parent company and no agreement has been reached yet.
'And there is a possibility of no deal at all.'
Mr Zhang, who is also president of parent company China Network Communications Group Corp (China Netcom), is a key negotiator in the talks with PCCW.
This is the first time a top management figure from the mainland's No2 carrier has publicly admitted the possibility of the talks being abandoned.
Mr Zhang's effort to talk down investors' expectations of a deal is expected to ease fund managers' fears of possible future pressure being put on the listing candidate by the parent.