Cathay Pacific, which had a 17.5 percent stake swap with Air China, could provide the management expertise CEA wanted from its planned strategic alliance with SIA, said Li Lei.
Responding to CEA's refusal to give consideration to an ally with Air China, the official said whether the counter-offer could be accepted would be based on how reasonable and exercisable the offer was and how best it represented the interests of the nation's aviation sector.
Hong Kong-based CNAC said last week SIA's offer price doesn't reflect CEA's fair value. The deal was unfair to other shareholders and domestic airlines as it included anti-dilution rights and a non-competition clause.
The offer price greatly underestimated CEA's profitability in the future in light of the nation's aviation boom and its dominant market share in Shanghai, a mutual fund manager, whose firm held Air China, CEA and China Southern stakes, told Xinhua on condition of anonymity.
CEA had earned 1.04 billion yuan (US$ 143 million) in net profit in the first three quarters of 2007, compared with a loss of 2.78 billion yuan in 2006.
