New World Development's (HKG:0017) talks with Blackstone over fresh capital have stalled over company control, Bloomberg reported Wednesday, citing people familiar with the matter.

The investment firm was in talks with the Cheng family, which controls New World Development, to invest about $2.5 billion to become the largest shareholder of the cash-strapped Hong Kong developer.

But the billionaire family, which would also invest $1 billion to $1.5 billion under the proposal, is exploring deals with other investors that do not involve ceding influence.

The Cheng family owns 45% of the business and is also exploring asset sales to generate cash for the property developer.

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