Wednesday, September 3, 2008

Daily news - 3 Sep

SIA shares soar 3% to hit 5-week high
Singapore Airlines – SIA shares recorded one of its strongest rallies in recent months to close at a five-week high, triggering a slew of rumours about potential corporate activity. The stock raced up 46 cents or 3% to close at $15.64 yesterday - its highest close since July 30. Volume was heavier than recent daily sessions, with some 3.7m units changing hands. The strong performance sparked off frenzied market speculation that SIA could be launching another bid for a stake in Shanghai-based China Eastern Airlines. But an SIA spokesman dismissed the speculation, saying he was not aware of any new developments on that front. Last November, SIA and its majority owner Temasek Holdings launched a joint bid to buy a 24% stake in China Eastern at HK$3.80 (S$0.69) a share in a US$920m deal, but it was rejected by China Eastern's minority shareholders with many complaining that the stake was being sold too cheaply. In January, the parent group of domestic rival Air China proposed a cash injection of US$1.9bn that involved a broad tie-up between the two airlines' operations for HK$5 per share, but China Eastern rejected the offer.

Source: Kim Eng

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