Source: AFX News Author: 12/21/2007
Subject Concerned: Government Airlines
China Eastern Airlines president-chairman Li Fenghua said Air China is unlikely to hinder its stake-sale agreement with Singapore state investment company Temasek Holdings and Singapore Airlines.
Li said that the deal has won regulatory approval and Air China, a state-owned firm, must comply with the decisions of the government.
He called the agreement with the Singaporeans China Eastern's "last and only plan" and said his airline has no intention of revising it.
Even if shareholders reject the stake sale at their Jan. 8 meeting, management will continue presenting similar plans until approval is obtained, he told a media briefing.
Air China's parent China National Aviation Corp is a minority shareholder of China Eastern. In recent months it has raised its stake to 12 pct from 10 pct.
In September SIA and Temasek agreed to buy a combined 24 pct stake in China Eastern at HK$3.80 per share.
CNAC has said it is deliberating over whether to vote in favor of the deal or not.