In response to China National Aviation Holding Company's (CNAHC)
request to review the offer, China Eastern Airlines said yesterday
that the proposed plan for a share sale to Singapore Airlines Ltd
will remain unchanged until the shareholders' meeting next
Tuesday.
A senior official close to the deal from China Eastern told
China Daily that minor shareholders have the right to query
the offer, but the details of the proposed sale would not be
changed.
The parent company of Air China, China National Aviation Holding
Company, which owns a 12.07 percent stake in China Eastern, said
yesterday that an offer by Singapore Airlines Ltd for a stake in
China Eastern Airlines Corp did not reflect fair value of the
Shanghai-based airline, and that it reserved the rights to make a
counter-proposal.
It requested that China Eastern and the bidders present a better
proposal.
The CNAHC statement comes after Li Jiaxiang, chairman of Air
China and its parent company, was appointed on Friday as the new
head of the General Administration of Civil Aviation of China,
China's aviation watchdog.
Air China A shares soared 8.05 percent to close at 29.65 yuan
yesterday, boosted by Li's new appointment. China Eastern Airlines
jumped 1.32 percent to close at 21.57 yuan.
"The new appointment and the clear statement from China National
Aviation cast new doubts and uncertainties on the conclusion of the
proposal," said Xia Fulu, an analyst at Industrial Securities.
(China Daily January 3, 2008)
