Beijing blocks Cathay/Air China bid for China Eastern

Cathay Pacific and Air China's attempt to block Singapore Airlines from buying a stake in China Eastern was aborted following political opposition from Beijing, reported the South China Morning Post. A joint bid by Cathay and Air China's parent company for a stake in Shanghai-based China Eastern was abandoned late Monday after failing to receive approval from the State Council. The attempt to rival SIA's bid was blocked at the weekend by the State-owned Assets Supervision and Administration Commission (Sasac), Caijing magazine reported. Sasac had already given its approval to the US$930 million Singaporean bid for a stake in China Eastern. Beijing's intervention in a Hong Kong stock exchange transaction may raise uncertainties for investors hoping to cash in on the consolidation trend among major mainland airlines.