The parent company of Air China is expected to file a proposal to buy a stake of China Eastern Airlines within two weeks.
China Eastern's minority shareholders earlier overwhelmingly voted down a rival proposal for Singapore Airlines and Singaporean investment agency Temasek to buy 24 percent of China Eastern for US$920 million.
It is reported that Air China would keep its promise to purchase Hong Kong-listed shares of China Eastern at a price no less than $0.641.
It is said that the parent company of Air China will submit a proposal to China Eastern to buy into the Shanghai-based airlines company within two weeks.
Another source said Air China might propose that the two Chinese airlines should swap some of their stock as part of the deal.
The Singapore Airlines and Temasek deal, announced in September, had received Chinese government approval and was meant to be a key part of China's efforts to modernise its aviation industry by bringing in foreign expertise and branding.
The shareholders' rejection was widely expected. Air China said it was prepared within two weeks of the shareholder meeting to make a higher bid. Air China's partner Cathay Pacific, an arch-rival of Singapore Airlines, said it would consider joining such a bid.
If successful, Air China would also unite the business operation of its international flights with China Eastern as well as its cargo business.
But the Air China executive said Air China did not aim to acquire or merge with China Eastern but expected to team up with the smaller rival to jointly develop business.
|
|
|
Source: cargonewsasia
|
|
