Carlyle makes smaller Xugong bid

US private equity firm Carlyle Group has agreed to reduce the size of its proposed investment in Chinese construction equipment manufacturer Xugong in order to push the deal through, the Wall Street Journal reported. Following widespread concern in China that foreign investors were pillaging the country's economic assets, Carlyle is to bid for a 50% stake in Xugong rather than the 85% it originally wanted. Consequently, the size of the offer will fall to around US$230 million from US$375 million, sources close to the deal said. "The revised agreement represents a considered and pragmatic approach," a Carlyle spokeswoman said. The acquisition still requires government approval if it is to go through.