Cathay Stock trading suspended

gcaflyer

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Saw today where CX suspended trading of their stock pending a public announcement concerning something that could affect share price. Any word on what the announcement may be? The press release is on the CX website. Is this common practice on the Hong Kong Stock Exchange? Maybe its just routine.
 

TX_DFW

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I found this on the net, I think it would be a good thing for CX if it were to happen.

Cathay Pacific swoops for China Eastern


By Mark Kleinman in Hong Kong
Last Updated: 10:13pm BST 21/09/2007


Cathay Pacific is preparing a bid for a major stake in China's third-biggest airline, triggering a fresh round of consolidation in Asia's fast-growing aviation industry, telegraph.co.uk can reveal.
Cathay, whose largest shareholder is the British-Asian trading group Swire Pacific, is expected to announce next week that it is making an offer for a large stake in China Eastern Airlines, which is valued at about $4bn (£2bn).
The move, which is due to be thrashed out over the weekend, may set the scene for an unprecedented tussle between rival international airlines for a stake in a domestic Chinese carrier.


Earlier this month, Singapore Airlines and Temasek, Singapore's state investment vehicle, agreed a deal to pay $923m for a 24pc stake in China Eastern.
That agreement, which has yet to be rubber-stamped, would be derailed by a successful bid from Cathay, which may enlist the support of Air China, the country's largest state-owned carrier and the owner of more than 10pc of China Eastern's Hong Kong-listed shares.
Under a deal struck last year, Cathay and Air China already own approximately 17.5pc of each other, and people involved in the talks said tonight that the details of a proposed transaction, including the participation of Air China's parent company, might change during the course of the weekend.
"There are still a lot of moving parts," said one person close to the situation.
Cathay's shares were suspended earlier today after reaching a record high on speculation of ongoing consolidation.
"At Cathay Pacific's request, trading of our shares on the Hong Kong Stock Exchange has been suspended this afternoon pending release of an announcement of the company under Listing Rules in respect of a proposed transaction which constitutes price sensitive information. We have no further comment until then," said a statement issued by Cathay.
China is one of the world's fastest-growing markets for passenger travel, with Airbus and Boeing both predicting soaring demand for aircraft there during the coming decades.
Hong Kong-based Cathay already owns the regional carrier Dragonair, which flies to cities across China and much of the rest of Asia, and trumping the Singaporeans for the China Eastern stake would enable it to fend off a formidable competitor.
As part of the proposed deal between China Eastern and the Singaporean investors, the Chinese airline was expected to agree not to sell shares to a competitor of Singapore Airlines.


http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/21/bcncathay121.xml
 
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