China National may counter bid for China Eastern stake

China National Aviation Holding Co. will make a counter offer for a stake in smaller rival China Eastern Airlines Corp. if shareholders reject a HK$7.16 billion (US$918 million) bid led by Singapore Airlines Ltd.

China National will "put forward our proposal," if shareholders reject the offer on Jan. 8, it said in an e-mailed statement Thursday. The company, parent of Air China Ltd., will "do what we've required others do, like offering a fair price," its Beijing-based spokesman Gao Jianming said by phone.

China Eastern Thursday defended plans to sell the stake to Singapore Airlines, saying China National's criticism that the offer was too low was biased. Air China's parent and its affiliate Cathay Pacific Airways Ltd. last year considered a bid for China Eastern, hoping to use its Shanghai hub to further their position in the world's second-largest aviation market.