(AFP) - Malaysia's largest Chinese party, which is split over its controversial takeover of two independent Chinese newspapers, has offered to sell most of its holding if a good enough offer is received.

Ling Liong Sik, transport minister and president of the Malaysian Chinese Association (MCA), was quoted by Friday newspapers as saying the party is looking for "strategic partners" in Nanyang Press Holdings.

The takeover of Nanyang Press, which publishes Nanyang Siang Pau and China Press , by the MCA investment arm has sparked widespread protests from numerous Chinese groups who fear an erosion of press freedom.

The deal has split the MCA, the second largest party in the ruling Barisan Nasional coalition which is dominated by the United Malays National Organisation (Umno).

Yesterday, even Deputy Premier Abdullah Ahmad Badawi, who is Umno deputy president, expressed concern that the controversy could cost the coalition crucial Chinese votes.

BN relied heavily on Chinese votes to retain its two-thirds majority in the November 1999 elections following an erosion of Malay support.

Ling said the MCA, which owns 72 percent of Nanyang Press, wants partners who can add value to the company.

"I will look at the proposals and if they are good enough, the MCA is even willing to settle for a minority stake in the company," The Star quoted him as saying.

Applications opened for 10 days

Applications to buy a stake must be submitted within 10 days and could come from any racial group.

Ling denied his offer was in response to the uproar over the MCA takeover, calling it a business strategy.

The MCA already owns the largest English-language daily, The Star . Groups close to Umno control the other English titles and the main Malay papers.

The Chinese-language press has traditionally been more non-aligned.

Community groups fear the takeover will silence independent voices on issues like Chinese education and culture.

One coalition has urged all Malaysian Chinese to stop buying and advertising in the papers, which have a combined circulation of 400,000.

Vendors quoted by The Sun newspaper said sales had dropped five percent in the past fortnight.

Two of Ling's fellow cabinet ministers who oppose the deal fear the MCA is risking its assets in the 230.12-million-ringgit deal and antagonising the Chinese community.