PCCW chairman Richard Li Tzar-kai is likely to reach a final agreement on acquiring the full stake of Chinese financial daily Hong Kong Economic Journal by the end of this month, market sources say.
It is understood that Mr Li is in final talks with owner Lam Shan-muk and has only the terms and conditions - including the controversial code of practice for the editorial department - and legal documentation to complete in order to seal the deal.
'If the negotiations cannot be finalised this month, Mr Lam may approach other interested parties to complete the sale,' said an industry source yesterday.
Cho Chi-ming, a director and a 5 per cent stakeholder in the Journal, said last month there were four to five consortiums, including Mr Li, that had expressed an interest in the newspaper.
He said yesterday that Mr Li had the exclusive right to talk with Mr Lam until next month.
'It will all depend on fate whether I buy the Journal or not, since the transaction is not a one-sided matter,' said Mr Li after a PCCW Now Business News Channel launch ceremony yesterday, adding that he had no plans to launch a new Chinese financial daily if negotiations with the Journal fell through.
Market sources said both sides had reached an agreement on how much the deal would cost with Mr Li expected to pay between $250 million and $280 million, of which several million would be taken up with severance payments to the existing 200 staff. The actual price for the Journal is believed to be from $160 million to $180 million.
