BEIJING, Jan. 7 -- The parent company of the nation's
largest airline company, Air China, said yesterday it plans a make a counter
offer of HK$5 per share - or a third more - for China Eastern Airlines if
shareholders rejected a Singaporean deal.
In a statement last night, China National Aviation
Corp (CNAC), which owns 12 percent of China Eastern's Hong Kong-listed shares,
said it would submit a bid within two weeks if Tuesday's shareholding meetings
rejected China Eastern's union with Singapore Airlines and Singaporean
investment agency Temasek.
The move adds further uncertainties to the deal
between the nation's third-largest airline company and its potential Singaporean
partners, who are bidding for a 24 percent stake in China Eastern at HK$3.80 per
share.
CNAC said it is dedicated to bringing about a full-front
partnership between China Eastern and its biggest rival, Air China, as well as the
Beijing-based company's partners, in particular to establish Shanghai as an
international airline hub.
"If the Singaporean deal is not approved at the
shareholder meetings, we propose to replace Temasek and Singapore Airlines with
CNAC by becoming China Eastern's new partner," CNAC said yesterday.
CNAC also said yesterday that to maximize the results
of its partnership with China Eastern, it would "establish Shanghai as an
airline hub in joint efforts with China Eastern to achieve mutual benefits and
win-win situation to all parties".
China Eastern was not available for comment
yesterday, but its chairman Li Fenghua told reporters earlier that it would not
accept any offer proposed by Air China and its parent.
(Source: China Daily)
