The parent company of the nation's largest airline company, Air
China, said Sunday it plans a make a counter offer of HK$5 per
share - or a third more - for China Eastern Airlines if
shareholders rejected a Singaporean deal.
In a statement last night, China National Aviation Corp (CNAC),
which owns 12 percent of China Eastern's Hong Kong-listed shares,
said it would submit a bid within two weeks if Tuesday's
shareholding meetings rejected China Eastern's union with Singapore
Airlines and Singaporean investment agency Temasek.
The move adds further uncertainties to the deal between the
nation's third-largest airline company and its potential
Singaporean partners, who are bidding for a 24 percent stake in
China Eastern at HK$3.80 per share.
CNAC said it is dedicated to bringing about a full-front
partnership between China Eastern and its biggest rival Air China
as well as the Beijing-based company's partners, in particular to
establish Shanghai as an international airline hub.
"If the Singaporean deal is not approved at the shareholder
meetings, we propose to replace Temasek and Singapore Airlines with
CNAC by becoming China Eastern's new partner," CNAC said
Sunday.
CNAC also said Sunday that to maximize the results of its
partnership with China Eastern, it would "establish Shanghai as an
airline hub in joint efforts with China Eastern to achieve mutual
benefits and win-win situation to all parties".
China Eastern was not available for comment Sunday, but its
chairman Li Fenghua told reporters earlier that it would not accept
any offer proposed by Air China and its parent.
(China Daily January 7, 2008)
