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Netcom-PCCW deal in doubt

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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.

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