SASAC denies intervention in China Eastern's SIA deal vote
Updated: 2008-01-05 17:32
China's state assets watchdog on Friday issued an indirect denial of reports it had pressured shareholders of China Eastern Airlines into approving an investment by Singapore Airlines (SIA).
In a vague, two-sentence statement which made no mention of China Eastern, the State-owned Assets Supervision and Administration Commission (SASAC) said, "Chinese central-government-owned companies conduct business independently and in line with market principles."
"We support the State-owned giants having overseas strategic investors."
The planned sale is shrouded in uncertainty after China National Aviation Corporation (Group) (CNAC), a major CEA shareholder, said on Thursday it would make a counter-offer if shareholders reject the deal at a meeting to be held in Shanghai next Tuesday.
CNAC, which holds 12.07 percent of China Eastern's H shares, is a wholly-owned subsidiary of China National Aviation Holding Company (CNAHC), parent of flag carrier Air China.
The Hong Kong-based company said Wednesday that the offer price of HK$3.8 does not reflect the fair value of China Eastern and the deal is unfair to other shareholders and domestic airlines as it includes anti-dilution rights and a non-competition clause.
CNAC went further to say that the deal is a potential hurdle to the future development of the nation's civil aviation industry.
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