Air China Parent to Bid for Carrier
考研英语
时间: 2019-04-08 14:17:21
作者: 匿名
Air China Ltd's parent has decided to bid for a stake in rival China Eastern Airlines Corp, after Singapore Airlines Ltd's HK$3.80 (49 US cents) a share offer was rejected.
China National Aviation Holding Co said in an announcement on Saturday that it proposed to become "alliance partners" with China Eastern. Details of the offer will be announced tomorrow, it said.
Air China, the world's largest airline by market value, and affiliate Cathay Pacific Airways Ltd of Hong Kong are seeking a tie-up with Shanghai-based China Eastern to dominate the world's second-largest aviation market. China National Aviation will offer at least HK$5 a share, after minority shareholders rejected SIA's bid.
"I see greater possibility for China National Aviation to win the bid," Li Lei, an analyst at China Securities Co, told Bloomberg News. "I don't think Singapore Airlines can work out a counter-bid in such a short time, given the approval procedures from shareholders and Chinese industry regulators."
China Eastern spokesman Luo Zhuping and SIA spokesman Stephen Forshaw didn't pick up calls made to their mobile phones on Saturday seeking comment.
China National Aviation said on January 6 that it may seek to buy as much as 30 percent of China Eastern. The company may also propose a cargo venture between the two carriers and Cathay Pacific, three people familiar with the negotiations said on January 11.
"The tie-up would further boost Air China's profitability and increase its market position in the country's aviation industry," Li said.
Chinese carriers have a 44-percent share of the nation's international passenger market and less than 20 percent of its international cargo market, according to China National Aviation.
The company helped scuttle SIA's bid to buy 24 percent of China Eastern. It owns about 10 percent of China Eastern's shares and voted against SIA's offer.
China National Aviation Holding Co said in an announcement on Saturday that it proposed to become "alliance partners" with China Eastern. Details of the offer will be announced tomorrow, it said.
Air China, the world's largest airline by market value, and affiliate Cathay Pacific Airways Ltd of Hong Kong are seeking a tie-up with Shanghai-based China Eastern to dominate the world's second-largest aviation market. China National Aviation will offer at least HK$5 a share, after minority shareholders rejected SIA's bid.
"I see greater possibility for China National Aviation to win the bid," Li Lei, an analyst at China Securities Co, told Bloomberg News. "I don't think Singapore Airlines can work out a counter-bid in such a short time, given the approval procedures from shareholders and Chinese industry regulators."
China Eastern spokesman Luo Zhuping and SIA spokesman Stephen Forshaw didn't pick up calls made to their mobile phones on Saturday seeking comment.
China National Aviation said on January 6 that it may seek to buy as much as 30 percent of China Eastern. The company may also propose a cargo venture between the two carriers and Cathay Pacific, three people familiar with the negotiations said on January 11.
"The tie-up would further boost Air China's profitability and increase its market position in the country's aviation industry," Li said.
Chinese carriers have a 44-percent share of the nation's international passenger market and less than 20 percent of its international cargo market, according to China National Aviation.
The company helped scuttle SIA's bid to buy 24 percent of China Eastern. It owns about 10 percent of China Eastern's shares and voted against SIA's offer.