|
HONG KONG - A KEY China Eastern Airlines shareholder said on Tuesday a bid by Singapore Airlines to raise its stake in the mainland carrier had undervalued the company, the latest blow to the turbulent deal.
'The subscription price of HK$3.80 (S$0.72)... does not reflect the fair value of China Eastern Airlines,' China National Aviation Corporation (Group) Limited (CNACG) said in a statement.
'As a shareholder of China Eastern Airlines, we request that China Eastern Airlines conducts further discussions with the Singapore Airlines (SIA) and Temasek... in order to reach a practical plan acceptable to us,' the statement added.
The state-owned company also said anti-competition elements of the current proposal were unfair to domestic and international investors, and could hinder the development of China's booming air industry.
SIA, along with the city-state's investment firm Temasek Holdings, agreed in early September to buy a combined 25-per cent stake in the Chinese airline at about HK$3.80 a share.
However, China Eastern shares listed in Hong Kong have since more than doubled amid expectations that a rival bid for China's number three carrier launched by Hong Kong-based Cathay Pacific and Air China would be relaunched.
CNACG owns a 12.07 stake in China Eastern's Hong Kong-listed shares, according to a Hong Kong Stock Exchange listing
The parent company of Air China, China National Aviation Holding Company, which also owns a 12.07 per cent stake in China Eastern, has previously said it may vote against the deal when it is put to shareholders on Jan 8. -- AFP
| 
