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March 20, 2008 |
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CHINA EASTERN: Singapore Air Continues Talks to Acquire Stake Singapore Airlines disclosed that they are still negotiating for a controlling stake in China Eastern Airlines Corporation Limited, Reuters reports. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders earlier rejected a bid by Singapore Airlines and Temasek Holding Pte Limited to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. However, on Feb. 25, China Eastern rejected Air China's proposal and pledged to instead continue seeking another strategic investor, Reuters relates. Reuters notes that Stephen Forshaw, Singapore Airlines spokesman, confirmed that Singapore Air is still pursuing a stake in China Eastern but admits that its bid remains in China Eastern's shareholders' fate. "We are still in talks with China Eastern. We will continue a dialogue with them, but the question of when we may go back to shareholders and how that will take place is a question for China Eastern and not for us," Mr. Forshaw said. About China Eastern 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-. Fitch said the outlook on the IDRs is stable. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. |
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