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China Eastern-SIA deal nears

China Eastern Airlines’ H shares have surged by almost

30% in the past week to their highest close since listing in Feb-97, on reports

it is in final (price) negotiations with Singapore Airlines (SIA) over the sale

of strategic stake (probably up to 25%). State-owned China National Aviation

Corp is aggressively buying China Eastern shares, possibly as part of moves

by Beijing to retain majority control of the airline ahead of a possible sale

to SIA.

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