PRESS DIGEST-Financial Times, Wall St Journal Asia editions

SINGAPORE, May 30 (Reuters) - The Financial Times and the Wall Street Journal carried the following stories in their Asia print and/or website editions on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

FINANCIAL TIMES (www.ft.com)

- India's government has given its strongest hint yet that it was prepared to raise domestic fuel prices in a politically sensitive move as it grapples with the soaring cost of oil.

- Hong Kong fixed line telecoms group, PCCW (0008.HK) plans to fold some of its core assets into a separate holding group and sell up to 45 per cent of the new company to investors. The company, chaired by tycoon Richard Li, proposes to reorganise its Hong Kong-related fixed-line, broadband, TV and mobile businesses into a new entity called HKT Group Holdings.

- Prosecutors raided the Bonn headquarters of Deutsche Telekom (DTEGn.DE) as part of a probe into possible criminal actions by former executives during an alleged spying campaign targeting directors and journalists three years ago.

- The chairman of Reliance Communications (RLCM.BO), Anil Ambani, is pushing for a controlling position in a new entity created by a possible merger of Reliance and South Africa's MTN (MTNJ.J). Ambani could become the enlarged group's biggest shareholder with a stake of almost 35 per cent.

WALL STREET JOURNAL (www.wsj.com)

- Leading banks, including Citigroup (C.N), HBOS HBOS.L and UBS (UBSN.VX) are reporting significantly lower borrowing costs for the London interbank offered rate (Libor) than what another market measure signals they should be, bringing into question the reliability of the benchmark at a critical juncture in the financial crisis.

- Anil Ambani and his older brother, Mukesh, have been vying to outdo each other since their father's death left them in control of one of India's biggest companies, and their rivalry triggered the split of Reliance. But Anil Ambani's interest in merging his Reliance Communications with South African cellphone operator MTN Group could give him first bragging rights to a major international deal.

- Vietnam's soaring inflation is threatening to develop into a full-blown crisis, a warning to other Asian countries trying to dampen rising prices.