Market News

Posted On Wednesday, January 9, 2008 at at 5:34 PM by Finance Analysis  

Well, Look What The Cat Dragged In


Analysts believe CNAC's hostile acquisition of China Eastern's stake would push Air China into heavy debt, although there is hope for long-term financial returns, while it will almost have no impact on Cathay Pacific's balance sheet. Even so, you cannot deflect a higher bid based on that conclusion. It is CNAC's strategy, who is to say their planning is improper. If CNAC can muster a higher bid that is funded, everyone else eat crap and shuddup.

"We are not considering any other deals and will continue pushing the partnership with Singapore Airlines," said Li Fenghua, president of China Eastern after the vote at a special meeting. In November, Singapore Airlines and its parent, Temasek Holdings, signed definitive agreements with China Eastern to take a 24% stake in the carrier worth HK$7.2 billion or HK$3.80 per share.

The battle between Air China's (0753) parent China National Aviation Corp(CNAC) and Singapore Airlines over SIA's potential partnership with China Eastern Airlines (0670) took a new twist yesterday after China Eastern shareholders voted against the deal.

The deal was voted down yesterday with 77.61% of attending minority shareholders going against it. Altogether, 75% of H-share and 94% of A-share voting power opposed the deal.

(More...)

Source: Malaysia Finance

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