BEIJING (AFP) — Singapore Airlines on Wednesday ruled out a rise in its bid for a stake in China Eastern Airlines despite the Chinese carrier's share price nearly doubling since the offer was made.
"We've already put our ceiling on the table, so that's it," Singapore Airlines chief executive officer Chew Choon Seng told reporters in Beijing.
"I think we have enough organic capacity in our own operations and opportunities that are out there in the world. So nothing is a must-have," he said at a press conference of the Star Alliance group.
The company agreed in early September to buy jointly with the city-state's investment firm Temasek Holdings a combined 25-percent stake of the Chinese airline at about 3.8 Hong Kong dollars (0.5 dollars) a share.
But the price of China Eastern closed at 7.48 Hong Kong dollars Wednesday, amid expectations that a rival bid for China's number three carrier launched by Hong Kong-based Cathay Pacific and flag carrier Air China would resume.
In late September, Cathay Pacific and Air China's parent company abandoned the attempt to block Singapore Airlines' deal, reportedly as a result of pressure from the Chinese authorities.
"If the government of China intends to have national airline operators that are globally competitive, then it must also have a situation where there is competition domestically as well," Chew said.
Copyright © 2009 AFP. All rights reserved. More »
