Blackstone Talks on $4 Billion New World Deal Stall Over Control

Blackstone Inc.’s talks with New World Development Co. have hit a roadblock because the billionaire family that runs the cash-strapped Hong Kong developer is reluctant to give up control, people familiar with the matter said.

Blackstone has proposed injecting about $2.5 billion into a special‑purpose vehicle to become the largest shareholder of New World, while the Cheng family would invest $1 billion to $1.5 billion, the people said, asking not to be identified because the matter is confidential. Talks have slowed recently as the family explores deals with other investors without ceding influence, the people said.

New World was ...