China National Aviation Holding Co. (CNAC) and Air China reportedly will make a bid for China Eastern Airlines in the wake of a failed effort to link with Singapore Airlines.
Air Transport World reported that China Eastern had previously rejected the Air China offer and accused CNAC of manipulating the market to boost the return on the 189 million shares it holds in China Eastern.
Prior to the shareholder vote, China Eastern's President Li Fenghua said if the proposal were rejected, China Eastern would continue to hold shareholder conferences until it is passed.
The State-owned Assets Supervision and Administration Commission of the State Council said, "We support our state-owned airlines' effort to introduce foreign investors, but they [the airlines] are entitled to manage their business independently by complying with market rules."
Singapore Airlines Cargo is the world's third largest cargo airline.
In 1998, Shanghai-based China Eastern Airlines and COSCO jointly established China Cargo Airlines Limited which uses China Eastern's network for cargo operations.