China Eastern Still In Need Of A Strategic Investor

August 2008 | M&A News Alert

The agreement between Singapore Airlines and Temasek to acquire a 24% stake in China Eastern Airlines expired on August 9. China Eastern said the agreement automatically terminated when preconditions were not met. Air China's interest in merging with China Eastern was a major obstacle to the deal. After increasing its China Eastern stake to 12%, Air China was able to block the deal by rallying other minority shareholders against the deal. Air China's holding company, China National Aviation Holding, then offered a higher price of HKD5 per share, which was also rejected by shareholders. Singapore Airlines offered 3.8HKD per

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