Cathay Pacific may buy into China Eastern

Cathay Pacific Airways is positioning itself to buy a stake in China Eastern Airlines, a move that could halt Singapore Airlines' deal to buy into the same carrier, the Wall Street Journal reported. According to an unnamed source, Cathay Pacific will make an announcement after the Hong Kong market closes today. Cathay Pacific and Air China own 17.5% of each other's shares. Air China, which has an affiliation with Cathay Pacific, already owns 11% of China Eastern.
Singapore Airlines (SIA) earlier this month agreed to buy a 15.7% stake
in China Eastern. Temasek Holdings, SIA's parent, would buy an additional 8.3%, taking the total amount up to 24%. The combined offer of US$925 million has been approved by China Eastern's management board and the State Council. A China Eastern official said the airline has not received any offer from Cathay Pacific.