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Richard Li Tzar-kai

Richard Li back in talks to buy paper at cheaper price

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SCMP Reporter

PCCW chairman Richard Li Tzar-kai has resumed talks to buy the Chinese-language financial daily Hong Kong Economic Journal, with market sources saying the asking price has dropped from $280 million to about $250 million.

The sources said Mr Li had re-entered negotiations with the newspaper's owners, including founder Lam Shan-muk and columnist Cho Chi-ming, after a month's hiatus.

'There is a good chance the parties will reach a final agreement soon. They are discussing details of logistics and operational matters,' one source said.

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The asking price of the newspaper was raised from below $200 million to $280 million earlier this year, prompting speculation that Mr Li would quit the negotiations as the market estimated a reasonable range to be between $150 million and $200 million.

However, sources said the current price range on the table was between $240 million and $250 million, with Mr Li being offered the option of taking a stake in the newspaper if he did not buy it outright.

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If he does buy the paper, Mr Li has guaranteed that neither he nor his company would interfere in its editorial operation. However, he will have control of the sales and marketing operations.

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