Cathay Pacific (293) is going to launch a hostile bid to buy a US$4bn stake in the PRC
airline with the help of Air China (753) and parent China National Aviation Corp.
"Another possibility we believe to be more likely is the idea that Cathay will transfer
10 cargo planes worth HK$10bn in exchange for a 49% stake in an airfreight JV with Air
China - a deal positive for Cathay Pacific and Air China", CLSA's analyst Adrian Lowe said