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December 28, 2007 |
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CHINA EASTERN: Domestic Carriers Anxious Over Singapore Air Deal Winny Wang of Shanghai Daily reported that "[d]omestic carriers are anxiously awaiting China Eastern Airlines' shareholder meeting on January 8, as the result will indicate the future direction of the aviation industry." The Troubled Company Reporter-Asia Pacific previously reported that shareholders will vote on the proposed sale of a 24% stake in China Eastern Airlines Corporation Ltd to Singapore Airlines Ltd and Temasek Holdings for HK$7.16 billion. Various reports last week said Air China, a shareholder of China Eastern, is not supporting the deal. Shanghai Daily, however, relates that Air China hasn't declared whether it will accept or veto the deal. The report noted that Air China's parent increased its holding in China Eastern's H-shares to 12.07% on November 29; if shareholders with more than 33.3% of China Eastern's H-shares veto the deal on January 8, the plan falls apart. Winny Wang writes that "Air China's Board Secretary Huang Bin said the firm has no plan to acquire China Eastern and that the purchase of shares was an independent initiative made by a Hong Kong-based investment arm under the parent company." Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com -- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. The outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. |
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