(Bloomberg) -- China Merchants Group Ltd. is considering bidding for a stake in PCCW Ltd.’s fiber business as separate talks between the conglomerate and Abu Dhabi’s sovereign wealth fund falter, people familiar with the matter said. 

Considerations are ongoing and a deal may not be reached, according to the people, who asked not to be identified discussing confidential information. 

PCCW’s American Depository Receipts jumped 7.8% following Tuesday’s Bloomberg News report, the most in 15 months. The company’s shares in Hong Kong rose 1% Wednesday morning. 

Abu Dhabi Investment Authority, or ADIA, has been in negotiations with PCCW over a significant minority stake in the fiber business for about $1 billion, Bloomberg has reported previously. Those talks have slowed, the people said. 

China Merchants couldn’t be reached for comment. PCCW and ADIA declined to comment. 

Bloomberg has previously reported that PCCW’s fiber assets were drawing interest from Chinese investors as well as Middle Eastern funds. Hong Kong-based PCCW is a telecommunications, media and technology conglomerate, with billionaire Richard Li as chairman. Its shares have fallen about 5% this year, giving the company a market value of HK$30.5 billion ($3.9 billion). 

China Merchants Group traces its roots back to 1872 when the Qing government set up a shipping firm called China Merchants Steamship Navigation Co., its website shows. The conglomerate, under China’s State-owned Assets Supervision and Administration Commission, is also based in Hong Kong and has businesses ranging from ports, transport and finance to property and health care.

--With assistance from Shirley Zhao and Nicolas Parasie.

(Updates with moves in ADRs and Hong Kong shares in third paragraph.)

©2024 Bloomberg L.P.