China Eastern expects government approval for SIA’s entry
Written by Administrator
Tuesday, 03 July 2007
BEIJING, July 2 (InfoChina) -- China Eastern Airlines (NYSE: CEA, HK: 0670, SH: 600115) has submitted a preliminary proposal on the introduction of Singapore Airlines (SIA) as a strategic investor to four governmental departments, reported China Business News.
The newspaper cited a senior official of the company as saying that the proposal will be deliberated by the State-owned Assets Supervision and Administration Commission, Ministry of Commerce, China Securities Regulatory Commission and General Administration of Civil Aviation.
The source expects approval will not take a long time and come across major hurdles.
On June 29’s general meeting of shareholders, board chairman Li Fenghua also disclosed that the company’s equity sale went smoothly and was undergoing regular procedures.
Starting from May 22, the company’s share trading was suspended, and market guess went that China Eastern’s introduction of SIA might be halted.
The above-mentioned senior official said that the suspension is made in view that A-share price has been stir-fried too high. And the trading will be resumed after the proposal was approved, which is responsible behavior for investors, added the source.
By far, details of the proposal are unknown to outsiders. (Edited by Chen Dongyi,
)
China Stock News 
