Source: Reuters Author: Samuel Shen 12/20/2007
Subject Concerned: Airlines
China Eastern Airlines failed to win a gesture of support from its rival and shareholder Air China for a stake sale to Singapore Airlines Ltd during a meeting of top executives, the Shanghai Securities News reported on Dec. 20.
Citing unnamed sources, the official newspaper said China Eastern Chairman Li Fenghua and President Cao Jianxiong held a three-hour meeting on Dec. 19 with their Air China counterparts Li Jiaxiang and Cai Jianjiang to explain the significance of the planned China Eastern alliance with Singapore Airlines.
However, Air China did not express support for the deal, the newspaper said.
China Eastern has agreed to sell a 24 percent stake to Singapore Airlines and its parent Temasek Holdings for US$920 million. The deal needs approval from shareholders at a meeting on Jan. 8. Air China, whose parent owns 12.07 percent of China Eastern, and Cathay Pacific have said they were also interested in buying into China Eastern in order to block the Singapore Airlines deal.
Although the airlines ultimately abandoned that effort, Air China said last month it was leaving its options open.