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Singapore Airlines bid for China Eastern Airlines unsuccessful

Wednesday, January 9, 2008

A bid made by Singapore Airlines for a 24% stake in China Eastern Airlines was turned down by minority shareholders.

Talks about a sale started in March 2007 when Singapore Airlines and China Eastern started negotiations about a possible deal. According to Forbes the deal would have helped China Eastern's earnings and accelerate the consolidation and would have improved the market position of China's third-largest airline. Talks went on throughout the year and both companies suspended trading of their shares on May 21, 2007, according to a AFP press release.

The vote took place at a shareholder meeting in Shanghai, People's Republic of China. According to Financial Times Online, the blocking of the SA bid by minority shareholders is bad news for China Eastern Airlines managers, who were and still are in full support of Singapore Airlines, which the Singaporean government owns a 55% stake in via Temasek Holdings.

Financial Times Online says this is most likely due to the fact that Air China not having made any formal bids yet, instead creating many media rumors about a possible purchase. The bid by Air China, that is likely to be larger than that of Singapore Airlines, may be supported by Cathay Pacific, who are in a cross-shareholding relationship with China National Aviation Corporation, the parent company of Air China.


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  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License
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