China Eastern Airlines spurns China National Aviation proposal
China Eastern Airlines Corp. has spurned an offer by China National Aviation Corp. (Group) (CNAC) for a wide-ranging alliance, in a move that could shut the door for its tie-up with the countrys second largest airline, Air China.
By PTI |
BEIJING: China Eastern Airlines Corp. has spurned an offer by China National Aviation Corp. (Group) (CNAC) for a wide-ranging alliance, in a move that could shut the door for its tie-up with the countrys second largest airline, Air China.
CNAC, parent of Air China, had made the proposal to Shanghai-based CEA, Chinas third largest airliner, after China Eastern minority shareholders last month rejected an offer from Singapore Airlines and Temasek Holdings to buy a 24 per cent stake in CEA.
"Our board of directors has decided not to give further consideration to CNACs proposal after prudent and sufficient discussions and advice-seeking from the legal and finance consultants," the CEA said in a statement to the Shanghai Stock Exchange.
CEA said the company would stick to its plan of bringing in a strategic investor to make its main air transport business more competitive.
"In the whole process of proposal-making and with the communication method CNAC has never showed any sincerity and deep and thorough planning for our cooperation," the statement quoted by official Xinhua news agency said.
CNAC had offered to buy a stake worth USD 1.91 billion in CEA in an alliance that it said would help dominate their position in China, one of the worlds fastest growing aviation markets.
As the bitter battle for buying the stake intensified, CNAC offered to buy 2.98 billion shares at a price not less than five Hong Kong dollars in CEA.
Singapore Airlines and its parent Temasek Holdings had made a persistent bid to buy a 24 per cent stake in CEA for 3.80 Hong Kong dollar per share.
CNAC, parent of Air China, had made the proposal to Shanghai-based CEA, Chinas third largest airliner, after China Eastern minority shareholders last month rejected an offer from Singapore Airlines and Temasek Holdings to buy a 24 per cent stake in CEA.
"Our board of directors has decided not to give further consideration to CNACs proposal after prudent and sufficient discussions and advice-seeking from the legal and finance consultants," the CEA said in a statement to the Shanghai Stock Exchange.
CEA said the company would stick to its plan of bringing in a strategic investor to make its main air transport business more competitive.
"In the whole process of proposal-making and with the communication method CNAC has never showed any sincerity and deep and thorough planning for our cooperation," the statement quoted by official Xinhua news agency said.
CNAC had offered to buy a stake worth USD 1.91 billion in CEA in an alliance that it said would help dominate their position in China, one of the worlds fastest growing aviation markets.
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As the bitter battle for buying the stake intensified, CNAC offered to buy 2.98 billion shares at a price not less than five Hong Kong dollars in CEA.
Singapore Airlines and its parent Temasek Holdings had made a persistent bid to buy a 24 per cent stake in CEA for 3.80 Hong Kong dollar per share.
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