CX suspension of share trading

[buggaluggs]

As of 9:30 today, what are they cooking up me wonders? Something to do with the Air China cargo deal? Or some new jets for the boys....or.....

Buggs

[Cpt. Underpants]

My best guess is:

The purchase through cash and stock swap of a controlling share in China Eastern for the development of Shanghai as a second hub - additional slots into the USA and Europe being the motivation.

[flynhigh]

From Bloomberg

Swire, Haeco Halted on Transaction Statements; Cathay Suspended
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By Wendy Leung and Kyunghee Park

June 7 (Bloomberg) -- Swire Pacific Ltd. and affiliate Hong Kong Aircraft Engineering Co. halted their shares from trading in the city pending statements related to takeovers and mergers.

Cathay Pacific Airways Ltd., an affiliate of Swire and Haeco, also suspended its stock ahead of a “price sensitive” announcement. The Hong Kong-based companies gave no further details in their stock exchange statements today and didn’t say whether the suspensions were related.

Cathay Pacific in September agreed to sell a HK$1.9 billion ($244 million) stake in Haeco to Swire, its largest shareholder, boosting cash holdings amid plunging travel demand. The airline still has a 15 percent stake in Haeco, Hong Kong’s largest airplane maintenance provider, while Swire owns 46 percent, according to data compiled by Bloomberg.

“There is a possibility that the remaining shares may be sold,” said Kelvin Lau, a Hong Kong-based analyst at Daiwa Institute of Research. “Swire may want Cathay to focus more on the airline business.”

Swire owns 42 percent of Cathay Pacific, Hong Kong’s largest airline.

Cindy Cheung, a spokeswoman for Swire, and Carolyn Leung, a Cathay spokeswoman, declined to comment. A call to Haeco went unanswered.

Swire and Haeco both said they would make announcements “pursuant to the Hong Kong Code on Takeovers and Mergers.”

To contact the reporters on this story: Wendy Leung in Hong Kong at [email protected]; Kyunghee Park in Hong Kong at [email protected]

Last Updated: June 6, 2010 22:20 EDT

[SMOC]

KA has done a hostile takeover all CX crew to become KA S/Os

[JAYTO]

Soon to come announcement regarding the severe downgrading of profit forecast as the first Hong Kong Airlines A330 arrives

[geh065]

CX is indeed selling the remainder of it's HAECO shares to Swire.

[ReverseFlight]

Swire and Haeco both said they would make announcements “pursuant to the Hong Kong Code on Takeovers and Mergers

This is a technical requirement, based on the facts in this thread. If Swire increases its holding in HAECO by more than a couple of percent in a year, or passes 51%, then the Code requires Swire to make a mandatory offer for all the HAECO shares it does not own. If too many shareholders accept the offer, it may not have sufficient public float and Swire will undertake to place down to maintain this. Besides, it's a connected transaction for CX within the Listing Rules and probably requires shareholder consent. Watch the announcements for further details.

[Freehills]

Hmm, Swire clearing the books for the future? As a CA "merger" with CX looks more and more likely, Swire will want to grab all the non-political (but far more profitable) bits of aviation. Wouldn't be surprised to see the cargo warehouse "sold" to Swire too soon.

Everyone is happy. Beijing get to control "the commanding heights of the economy", Swire get to make money without all the problems (political, industrial) that come from controlling an airline

[HKG Phooey]

KA + CX = CA lite

Air China take over?...........

Nee How

Seniority Lists to be stacked like this:

CA
KA
....CX

[Bob Hawke]

HKG phooey = tosspot.