The parent company of China’s largest airline, Air China, said yesterday 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 further adds 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 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 yesterday.
CNAC added yesterday that to maximize its partnership with China Eastern, it would "establish Shanghai as an airline hub with China Eastern to establish mutual benefits and a win-win situation for all parties".
China Eastern was not available for comment yesterday, but its chairman Li Fenghua told reporters earlier it would not accept any offer proposed by Air China and its parent.
（英語點津 Celene 編輯）
About the broadcaster:
Bernice Chan is a foreign expert at China Daily Website. Originally from Vancouver, Canada, Bernice has written for newspapers and magazines in Hong Kong and most recently worked as a broadcaster for the Canadian Broadcasting Corporation, producing current affairs shows and documentaries.
