皇冠体育app

It appears certain that Singapore Airlines will buy a certain stake in the money-loosing 皇冠体育app Eastern Airlines as both companies have said they will soon make a major announcement.

The two companies halted trading of their shares on Tuesday and insiders say an announcement could come as early as Friday.

"We are waiting for word from the headquarters," said Wang Yong, manager of Public Relations Department of Singapore Airlines' 皇冠体育app office when asked about the potential deal.

For 皇冠体育app Eastern, the deal would provide a major cash injection and help improve the quality of its assets. 皇冠体育app Eastern Airlines lost 510.86 million yuan in the first quarter of 2007, down from 955.1 million yuan in losses for the same period last year, according to its unaudited quarterly report.

Singapore Airlines would also bring to 皇冠体育app Eastern managerial expertise and in return get access to 皇冠体育app's rapidly growing mainland aviation market.

Li Fenghua, chairman of 皇冠体育app Eastern, said earlier that Singapore Airlines would not get more than 25 percent of his company, which is the maximum allowed by Chinese law.

Li was also quoted earlier as saying the deal needed policy support from the government. The agreement does require approval from regulators.

Goldman Sachs calculates that 25 percent of 皇冠体育app Eastern is worth about one billion U.S. dollars based on its share price on the Hong Kong exchange on Monday of 3.73 Hong Kong dollars (0.47 U.S. dollars).

皇冠体育app Eastern's A-share price has nearly tripled since February. It settled at 9.60 yuan before trading was suspended on the Shanghai market on Tuesday.

Li Lei, analyst of 皇冠体育app Securities Co., Ltd., says Singapore Airlines is likely to buy the relatively lower-priced Hong Kong shares