|
Cathay backs any Air China bid for China Eastern
2008-01-16
Cathay Pacific Airways (0293.HK), Hong Kong's flagship airline, will support any possible bid made by Air China group for China Eastern (0670.HK), chief executive Tony Tyler said on Wednesday. "We're happy to support any proposal Air China may make. They are very much in the driver seat, as long as the proposal is good for Cathay Pacific shareholders," Tyler told reporters. Last week, China Eastern's minority shareholders overwhelmingly rejected its proposal to sell a 24 percent stake to Singapore Airlines (SIAL.SI) and Singapore state investment agency Temasek (TEM.UL) for US$920 million. Air China's parent, China National Aviation Corp, has said it will now make a rival proposal for a tie-up with China Eastern. But immediately after the shareholders' meeting, China Eastern said it would not consider accepting CNAC as a strategic investor. Air China and Cathay Pacific hold stakes in each other. (Reporting by Joseph Chaney; Editing by Anne Marie Roantree)
|
