China Eastern shareholders reject Singapore Air, Temasek bid

Shareholders of China Eastern Airlines rejected the carrier's planned strategic partnership with Singapore Airlines (SIA) and SIA's parent Temasek Holdings at a special meeting of shareholders, China Eastern officials said.

The officials said that the plan was opposed by 77.61 pct of the A-share and H-share stockholders who were entitled to vote.

The proposal to sell 24 pct to the two entities needed support from two-thirds of the Chinese airline's shareholders, excluding China Eastern and its parent company, which were not allowed to vote.

China National Aviation Corp (CNAC), which is the parent company of rival Chinese carrier Air China and owns 12 pct of China Eastern's Hong Kong-listed stock, had opposed the plan to sell the shares to Singapore Airlines and Temasek at 3.80 hkd each.

CNAC has said it will offer 5 hkd per share if the plan fails to gain sufficient support.

Hong Kong's Cathay Pacific Airways has said it may also join CNAC in a rival bid for Shanghai-based Chinese Eastern.

(1 usd = 7.8 hkd)