China Eastern Airlines up in Hong Kong amid talk of Cathay bid
At 11.30 am, the stock was up 0.2 hkd or 2.06 pct at 9.92, after hitting a new all-time-high of 10.5.
The South China Morning Post reported over the weekend that Cathay may launch an attempt to buy a significant stake in China Eastern Airlines and use the holding to try and scupper Singapore Airlines' deal to acquire a stake in the mainland carrier.
Singapore Airlines said earlier this month that it has agreed to acquire a 15.7 pct stake in China Eastern, while Singapore government's investment arm Temasek Holdings will buy 8.3 pct of the Chinese carrier.
Their combined offer for the 24 pct stake amounts to 7.2 bln hkd.
Peter Lai, sales director at DBS Vickers, said China Eastern Airlines shares may not see much upside in the near term after gaining more than 165 pct in a month.
Cathay Pacific shares remain suspended. The company is expected to release an announcement sometime today. It last traded at 22.7 hkd Friday morning,up 10.73 pct .
Meanwhile, Air China also sought trading suspension today pending an announcement. It last changed hands at 11.84 hkd, up 1.54 pct.