Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / Civil Aviation Tools: Save | Print | E-mail | Most Read | Comment
Cathay Pacific may buy Eastern Airlines stake
Adjust font size:

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.


( September 24, 2007)


Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- China Eastern Airlines Unveils Stake Sale Plan
- Singapore Airlines Gets Nod to Invest in China Eastern
- Gov't Bodies Clear Airline Stake Sale
Most Viewed >>
-China set to hit the brakes on rising yuan
-Macao's gaming market expands further
-Snow's economic toll temporary: economist
-Power to resume shortly in worst-hit area by snow
-Online operators are on top of the game

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号