China Southern shares rise after confirming talks with American Airlines

Listen to this article


Shares in China Southern Airlines climbed to a 15-month high after the carrier said it was in talks with American Airlines regarding a possible stake sale.

China Southern, the biggest airline in Asia by passengers carried, said in a statement to the Hong Kong Exchange it was “in the negotiation of a possible strategic cooperation” with AA that could take the form of a share sale and other business cooperation.

The company has been in a trading halt since last Wednesday when it was reported by Bloomberg that China Southern was in advanced talks to sell a $200m stake to AA. China Southern has a market capitalisation of $10bn, half that of Texas-based AA.

Shares resumed trading today and were up 2.9 per cent to $HK5.61, compared to a 0.2 per cent decline for the Hang Seng benchmark. Shares had been up as much as 5.3 per cent.

There would be sense to a deal in which the airlines created a common network, writes Lex.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from and redistribute by email or post to the web.