China Eastern Says Rival's Concern Not Objective

China Eastern Airlines Corp., set to sell a stake to Singapore Airlines Ltd., said concerns of the parent of Air China Ltd. about the share sale aren't objective, asking the carrier's minority owners to support the deal.

"We believe their challenge and concerns over our introduction of strategic investors lack independence and objectiveness," China Eastern said today in an e-mailed statement. The airline hasn't received any alternative proposals from other carriers.

China National Aviation Holding Co., the parent of Air China, said the share sale price to Singapore Air and its parent Temasek Holdings Pte was inadequate and asked both companies to renew talks. The Singapore companies are spending HK$7.2 billion ($921 million) to purchase a 24 percent stake in the Shanghai- based carrier to tap the growth in China's aviation market.

China National owns about 10 percent of the minority shareholding of China Eastern.

China Eastern, whose proposal to sell the shares at HK$3.80 apiece will be voted on Jan. 8, urged the shareholders to support the plan. Opposition by China National Aviation could scuttle the sale, which needs approval from two-thirds of the minority shareholders to pass.

Under the plan, China Eastern's parent company would also invest HK$4.2 billion to maintain its majority.

China Eastern fell by as much as 4.6 percent in Shanghai today and changed hands at 20.83 yuan at 9:36 a.m. in the city. Air China fell by as much as 3.5 percent in the city and traded at 28.88 yuan.