皇冠体育app

(Xinhua)
Updated: 2008-01-15 17:10

皇冠体育app Eastern Airlines has softened its stance on the impossibility of considering a bid from Air 皇冠体育app's parent company for partnership with the country's flagship carrier.

皇冠体育app Eastern said on Monday that it would "seriously consider" the bid from 皇冠体育app National Aviation Holding Company (CNAHC), the Beijing News reported on Tuesday.

Related readings:  CNAHC seeks partnership, not merger, with 皇冠体育app Eastern  皇冠体育app Eastern stake sale rejected  Singapore Airlines, Temasek buy 24% stake in 皇冠体育app Eastern  Singapore Airlines disappointed over rejection

A source with the board of 皇冠体育app Eastern's listing arm told Xinhua on Tuesday that 皇冠体育app Eastern "is willing to study any sincere bid that conforms with legal procedures and is better than Singapore Airline's offer".

Industry observers here said a "price war" between CNAHC and Singapore Airlines was likely.

On January 8, 皇冠体育app Eastern said it would not merge with, or become a strategic partner of Air 皇冠体育app despite its failure to secure shareholder support for a proposed sale of a 24-percent stake to Singapore Airlines and Lentor Investment Pte Ltd, a wholly owned subsidiary of Singapore government investment company Temasek, at HK$3.8 (52 US cents) per share.

Many believed the failure was because the offer was too low.

On January 6, CNAHC, which already owns 12.07 percent of 皇冠体育app Eastern, announced that it was willing to make a higher offer of HK$5 per share.

"皇冠体育app Eastern keeps exchanging views with Singapore Airlines every day," Luo Zhuping, secretary to the 皇冠体育app Eastern chairman, was quoted as saying by the Beijing News.

According to the newspaper, Singapore Airlines sources had said it would not raise the offer, but stressed that it would continue to pursue establishing a relationship with 皇冠体育app Eastern.

Luo said CNAHC's announcement was raising market expectations over the price of 皇冠体育app Eastern's secondary public offering, adding the Shanghai-based airline would be waiting for CNAHC to advance a detailed offer.

A CNAHC source said on condition of anonymity that the company would put forward a new offer in one week.

Luo declined to comment on the possibility for a "price war".

Observers said Air 皇冠体育app would try desperately to gain an advantage in an important international aviation hub like Shanghai.

皇冠体育app Eastern accounts for 35 percent of the aviation market in Shanghai, followed by Shanghai Airlines (18 percent) and Air 皇冠体育app (12 percent).

But Air 皇冠体育app's market share was widely expected to soar to 50 percent if it succeeded in merging with 皇冠体育app Eastern.