CNAC to reject China Eastern-Singapore Airlines deal unless terms improved
"We still expect that the (share) subscription resolutions will be improved in accordance with the suggestion made in our last clarification announcement, and we will not accept the subscription resolutions if they are not improved as expected," CNAC said in a statement issued last night.
It said it will put forward its own proposal if the Singapore firms' deal is not approved at a special meeting of CEA shareholders on Tuesday. A media report said yesterday that CNAC -- Air China's parent -- plans to launch a bid of around 5 hkd a share for the 24 pct stake in CEA that SIA and Temasek have offered to buy at 3.80 hkd a share.
CEA shares yesterday closed down 11.06 pct at 7.16 on profit-taking after sharp gains in recent sessions on speculation over a counter-bid by CNAC.