Air China to increase stake in CX

[Fly747]

Business China | Finance, Economics, Business and Industry news from China

[bushcat400]

Just a question of time before the muppets from Beijing are in charge of the lunatic asylum. Expats are going to be drummed out over time...the signs are there

[ReverseFlight]

KA becomes CX. CX becomes Chinese. All happening as expected.

[Flying Phoenix]

Expats are going to be drummed out over time...the signs are there

I wouldn't worry too much about this happening - at least not for the foreseeable future (which is a long way off in my opinion). The pilot shortage (yes it is happening) isn't going away any time soon.

[Dan Winterland]

And CA are still having to hire ex-pats.

[Flying Phoenix]

Right now, the situation at CA is more like, "how do we stop guys from leaving?" With China Southern offering considerably more money and Hainan now willing to hire A320 Captains for the A330 (yes you have to pay for your own CCQ....... but still) they competition is getting pretty fierce. Like I said, I don't think anyone needs to get overly concerned with CA taking a greater stake in CX.

[330dryver]

The only problem with this story, is that it is nearly impossible for CA to get anymore than 29.9%. Legally if they want anymore they have to bid for the whole company and obviously swire wont sell. it is there pride and joy.

[geh065]

They can always invest in other parts of the company though, HAECO, Catering, Cargo terminal etc...

[quadspeed]

..if they want anymore they have to bid for the whole company and obviously swire wont sell.

Swire will sell if Beijing wants Swire to sell.

Nobody does big business on the mainland without a blessing or two, and Swire hold their blessings dear.

[ReverseFlight]

it is nearly impossible for CA to get anymore than 29.9%. Legally if they want anymore they have to bid for the whole company and obviously swire wont sell.

No and yes. The major shareholdings total 75% which allows a free 25% public float (see link below). By increasing their shareholding, CA will have to make a mandatory bid and while Swire doesn't have to accept the offer, some public shareholders may sell. If the Stock Exchange deems CX to have insufficient public float, CA will have to (a) place down some shares to maintain CX's listing, or (b) get an exemption from the Exchange to maintain CX's listing, or (c) CX's listing status may be withdrawn which means it becomes a private company.

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