Air Transport World

Air China.(ASIA/PACIFIC Report)(Brief article)

Air China parent China National Aviation Holding Co. was preparing its own bid for a larger stake in China Eastern Airlines after CEA's minority shareholders overwhelmingly rejected the airline's plan to sell a 24% stake to Singapore Airlines and Temasek Holdings. According to a CNAC statement, it intends to purchase not-more-than-30% of the airline's minority shares for at least HK$5 ($0.64) per share, significantly higher than the HK$3.80 offered by SIA. CNAC already holds 12%.

"Our new bid will be mainly focused on how to better implement a Shanghai hub strategy and achieve synergy with CEA, which will possibly include a cross shareholding as well as the establishment of a cargo joint venture," a CNAC insider said in early January after the SIA deal was defeated. …

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