China Eastern still keen on SIA

China Eastern Airlines remains keen on a tie-up with Singapore Airlines (SIA), with the former expressing intent to garner support from its shareholders for the bid.

Chairman Li Fenghua told Chinese media that China Eastern was interested to hold another shareholder meeting to discuss the planned stake sale, but did not confirm a date.

Shareholders previously rejected SIA's bid, claiming the US$923 million (HK$3.80 per share) offered undervalued the carrier. Air China's parent firm, China National Aviation Corp (CNAC) then said it would put in a HK$5.00 per share bid for the carrier, as well as provide it fresh capital under a deal that would involve broad business cooperation between the two airlines.

However the state parent of China Eastern refused to respond to the proposal, Reuters reported, saying it was incomplete, insincere and lacked legal validity.