HONG KONG (AP) — Dow Jones board member David Li confirmed yesterday that US securities regulators are considering legal action against him as part of an insider trading investigation linked to Dow Jones shares.The Hong Kong banker, a prominent member of the Hong Kong business and political elite, denied wrongdoing.

The news comes as Dow Jones & Co., which owns The Wall Street Journal, is in the final stages of considering a $5 billion takeover offer from News Corp., a global media conglomerate controlled by Rupert Murdoch. Its stock has soared to close to the $60 per-share price that Murdoch has proposed, well above the mid-$30s level before his offer became public in early May.

The Wall Street Journal reported on Wednesday that the U.S. Securities and Exchange Commission was planning to file a civil suit against Li, a Dow Jones director, for alleged insider trading.

It was unclear how the possible suit would affect Li's future role on the Dow Jones board. A spokeswoman for Dow Jones declined to comment, and the SEC declined to either confirm or deny its plans regarding a potential lawsuit.

The Bank of East Asia, where the 68-year-old Li serves as chairman and chief executive, said in a statement it's aware of the SEC investigation and that its board believes Li is "fully able" to continue in his current positions.

In May, the SEC accused two Hong Kong residents of illegal trading activity when they bought $15 million of Dow Jones stock ahead of an announcement in early May that News Corp. was seeking to buy the media company.

That lawsuit named Kan King Wong and Charlotte Ka On Wong Leung, a married couple, as defendants and said they made "highly profitable and highly suspicious" trades based on inside information between April 13 and April 30.

The lawsuit doesn't explain how the couple allegedly obtained inside information about News Corp.'s offer. Leung's father, Michael Leung, is a Hong Kong businessman who has close business and social ties with Li.

Michael Leung is a director of the Bank of East Asia's Canadian subsidiary, and the two men also serve together on the board of a local charity.

Li said in a statement yesterday the SEC informed him that it is considering "civil enforcement action" against him for alleged violations of US securities laws.

"I have broken no laws and deny the apparent allegations being made by the staff of the commission. If the commission does commence proceedings against me, I will defend myself vigorously," Li said in the statement, issued by the Bank of East Asia.

Li also sits on the territory's legislature and Cabinet, as well as the boards of dozens of charities and business groups. He is known to be a close aide to Hong Kong leader Donald Tsang.

Dow Jones said late on Tuesday that its board would sign off on Murdoch's takeover proposal, provided that the company's controlling shareholders, the Bancroft family, endorses it. The deal has now gone to them for final approval, and they are expected to meet on Monday and take several days to consider it.