SIA/CEA shares suspended
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It’s believed that the proposed deal would have boosted Singapore Airlines access to the eastern China region and improve China Eastern Airlines balance sheet to help it compete with the recent alliance between Hong Kong’s Cathay Pacific Airways and Beijing based carrier Air China.
Prior to the suspension, Hong Kong shares for China Eastern Airlines closed at HKD$3.73, having gained 60% over three weeks, amid reports of its deal with Singapore Airlines.
Based on the close of the stock, Singapore Airlines would have been expected to pay over HKD$7.65 billion for the China Eastern Airlines stake.
Both carriers declined to comment on the situation, with Singapore Airlines saying it would make a formal statement after the market close.
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