SIA to tackle China Eastern's explosive growth - the next shoe to drop...
Singapore Airlines (SIA) appears to have cut a very attractive
deal to access China’s surging passenger market. SIA’s long-awaited
agreement to acquire a strategic stake in China Eastern Airlines is priced at
HKD3.80 per share, just a 1.9% premium to the Shanghai-based carrier’s
last closing price back on 21-May-07. Since then, valuations of China Eastern’s
rivals have soared, with Air China’s shares up 56% and China Southern’s
more than doubling, up 121%. [383 words]