Singapore Airlines will not raise offer for China Eastern stake
Posted: 05 August 2008 1136 hrs

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SHANGHAI - Singapore Airlines (SIA), which seeks to buy a strategic stake in China Eastern Airlines - the nation's third-largest carrier - will not sweeten its offer in the derailed deal, state media reported.

"We will not raise the price of 3.8 Hong Kong dollars (48 US cents) agreed in the framework agreement last year," the Xinhua news agency reported late Monday, citing Stephen Forshaw, SIA's vice president for public affairs.

Singapore Airlines and Temasek Holdings, Singapore's investment firm, signed a preliminary deal last September to take a 24-per cent stake in China Eastern for US$923 million, or 3.8 Hong Kong dollars per share.

But the deal was voted down by minority shareholders in January after China National Aviation Corp (CNAC), the parent company of Air China, indicated it would make a higher offer.

China Eastern's management then rejected the CNAC offer, insisting it would continue to seek a partnership with Singapore Airlines.

Forshaw told Xinhua that SIA maintained a dialogue with China Eastern and the two carriers hoped to resume talks after the Beijing Olympics, which will be held August 8-24. - AFP/vm