Financial Times FT.com

Beijing urges CEA investors to accept deal

By Jamil Anderlini in Beijing

Published: January 2 2008 22:08 | Last updated: January 2 2008 22:08

The Chinese government is pressuring other shareholders in China Eastern Airlines to approve an investment by Singapore Airlines after state-owned Air China, which holds a significant stake in its domestic rival, expressed reservations about the deal.

Sasac, a government entity that controls all large state-owned companies outside the financial sector, including CEA and Air China, has told many of CEA’s largest shareholders not to oppose the deal, according to an executive at one of the carrier’s largest investors.

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