China Eastern shares suspended

Share trading of China Eastern Airlines' will be suspended in Hong Kong and Shanghai today, pending a shareholder vote on Singapore Airlines' plan to buy 24 percent of the carrier.

China Eastern, China's No. 3 carrier, said trading in the company's shares was expected to resume tomorrow.

The vote, to be held in Shanghai, comes two days after Air China's parent, China National Aviation Corp (CNAC), announced an 11th-hour plan to derail Singapore Air and Temasek Holdings' bid for part of China Eastern.

CNAC pledged to pay at least US$0.642 a share versus Singapore's $0.487 offer.

Cathay Pacific, Hong Kong's dominant carrier, said yesterday it would join Air China's parent's proposed alliance with China Eastern.

But China Eastern said it had not received any co-operation proposal from CNAC. China Eastern said the airline has reservations as to whether CNAC is sincere about its alleged intended co-operation with the company.

The airline said its strategic partnership with SIA is not only practicable but also considered the optimum avenue to further develop the company's business efficiently and effectively.