U.S. investment firm Carlyle Group is likely to cut its proposed stake in a major Chinese machinery maker in an effort to win approval for the purchase from China's government.

Carlyle will probably limit its stake in Xugong Group Construction Machinery Co. to about 50 percent, instead of taking 85 percent as it initially planned, the source said.

China's biggest construction equipment maker, Xuzhou Construction Machinery Group, agreed last October to sell 85 percent of Xugong, its largest unit, to Carlyle for $375 million.

But the Chinese government has not yet decided whether to approve the deal amid concern among some officials and academics that China may be selling control of industrial assets to foreigners too cheaply.

Source:佚名