Shares in China Eastern Airlines (CEA) fell to their lowest level in 17 months after the company announced that it didn’t plan on reopening discussions with Singapore Airlines regarding a strategic investment. The Shanghai-based carrier fell 7% to HK$2.14 (US$0.27) in Hong Kong trading on Friday, Bloomberg reported. The proposed shareholder agreement that would have seen the Singapore carrier and Temasek, Singapore’s state investment arm, take a 24% stake in CEA for HK$3.80 (US$0.49) a share expired on August 9. Shareholders in CEA vetoed the deal in January after Air China promised to make a higher offer, which was in turn rejected by the CEA board. Since then, CEA shares have fallen 68%. A spokesman for Singapore Airlines said the company was still interested in China’s airline industry and would "explore other means of developing relationships."
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