China Eastern shareholders to vote on Singapore bid
8 January 2008
China Eastern Airlines suspended trading of its shares on Monday before a shareholder meeting to be held Tuesday afternoon, Bloomberg reported. Shareholders will vote on a bid by Singapore Airlines and Temasek Holdings, Singapore's state investment agency, to purchase a 24% stake in the Chinese carrier at HK$3.80 (US$0.49) a share. On Sunday, state-owned China National Aviation Holding Company (CNAHC), parent company of Air China, said it planned to offer at least HK$5 (US$0.64) a share for a similar stake in China Eastern if shareholders rejected the Singapore bid. An announcement by Cathay Pacific on Monday that it would consider backing the CNAHC offer was seen to strengthen CNAHC's position. China Eastern shares closed at HK$6.73 (US$0.86).
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