Tug of war over China Eastern intensifies

Tug of war over China Eastern intensifies A major shareholder of Air China has upped the ante in the stakes for a piece of China Eastern Airlines by saying it would pay 33 percent more for the Shanghai-based airline than rival bidder Singapore Airlines has bid.
   Singapore’s bid for 48 cents a share was trumped Sunday by Hong Kong-based China National Aviation Corp., which holds a 12 percent stake in Air China, news outlets reported Monday. Previously, China Eastern had accepted a bid for more than $900 million for a 24 percent stake in the airline, but that bid was criticized last week by some China Eastern shareholders as not reflective of the actual value of the company.
   China Eastern executives, however, are not sure that CNAC has the finances to complete the deal at a price $458 million more than Singapore’s bid.
   Shareholders of the Shanghai-based airline are scheduled to vote on the new bid Tuesday.
   The addition of China Eastern could be a coup for Singapore, in that adding Shanghai as a twin hub with Singapore would widen the airline’s scope in the region, John Strickland, direction of aviation consulting firm JLS Consulting, told American Shipper.