Counterbid could come for China Eastern

Air China’s parent group is preparing a counterbid for a stake in China Eastern Airlines in order to prevent Singapore Airlines (SIA) from completing its purchase of a 24% holding in the airline, the Wall Street Journal reported. According to a person familiar with the situation, China National Aviation Holding Co (CNAHC), will offer around HK$5 (US$0.64) a share. Singapore Airlines, which is looking to invest in collaboration with Temasek, Singapore’s state investment agency, has offered HK$3.80 (US$0.48) a share. Given that China Eastern’s shareholders are scheduled to vote on the SIA bid, the source said it was unclear when the counterbid would come. However, the source said it was "quite clear" that CNAHC, which has a 12.07% stake in China Eastern, would vote against the deal. On Thursday China Eastern hit back at CNAHC claims that the SIA bid was too low, saying it was "the result of long-time, market-based talks."