? ?
BIZCHINA / Center
Cathay?Pacific may buy?Eastern Airlines stake
(chinadaily.com.cn)
Updated: 2007-09-24 14:28
Hong-Kong based Cathay Pacific Airways Ltd plans to invest in China
Eastern Airlines Corp, in a move that could derail rival Singapore
Airlines Ltd's deal to acquire a stake in the mainland carrier, according
to today's Nanfang Daily citing a report from Channel News Asia.
The UK's Daily Telegraph, citing South China Morning Post, said that the
Cathay bid for a large stake in China Eastern is worth US$4 billion.
Cathay's move, which will build on Air China's existing 11 percent stake
in China Eastern, is expected to trigger a bidding war over the routes
owned by China's third-largest carrier.
Sources close to Temasek Holdings Pte Ltd, an investment arm of the
Singapore government helping Singapore Airlines with its bid for a 24
percent stake for US$923 million, said it would "inevitably" respond to
any blocking move by Cathay.
Singapore Airlines agreed early this month to buy a 15.7 percent stake in
Shanghai-based China Eastern, whose share price has more than doubled in
the past month. Temasek Holdings agreed to simultaneously buy an
additional 8.3 percent of China Eastern shares.
It remains unclear as to how far Cathay can go with its bid.
South China Morning Post said the Cathy bid must first be approved by two
thirds of its stock holders, and sources close to the situation said the
bid is still uncertain.
China Eastern gained as much as 8 percent to HK$10.50 and changed hands
at HK$9.75 at the 12:30 p.m. trading break in Hong Kong, on course for
its seventh consecutive day of gains. Singapore Airlines declined to its
lowest in a month. Cathay Pacific and Air China, which own stakes in each
other, have halted their shares pending announcements.
(For more biz stories, please visit Industry Updates)
Related Stories ?
� Singapore Airlines gets nod to invest in China Eastern
===========================================================================
� Deal inked on sale of China Eastern stake
===========================================================================
� China nods approval of Air China stake in Cathay
===========================================================================
Learn Chinese
No comments:
Post a Comment