Carlyle fails to secure Xugong stake

US private-equity firm Carlyle Group will not proceed in its bid for a stake in Xugong Group, one of China's biggest manufacturers of construction machinery, the Wall Street Journal reported. A listed arm of Xugong Group said Tuesday its parent is no longer considering accepting an investment from Carlyle, while a spokesperson from Carlyle confirmed that its bid has been abandoned. Carlyle originally sought to take control of Xugong in 2005 by paying US$375 million for an 85% stake. It later scaled back its plan to a minority stake in hopes of garnering approval from China's National Development and Reform Commission, which it never received.