Posted on 12/30/2008 5:32:34 AM PST by TigerLikesRooster
China Eastern says bailout increased to one billion dollars
AFP - Tuesday, December 30
SHANGHAI (AFP) - - China Eastern Airlines, which is struggling with dwindling passenger numbers, said Tuesday a previously planned government cash injection would be more than doubled to over one billion dollars.
The country's third-largest carrier will receive the bailout money by selling new shares to its state-owned parent China Eastern Air Holding Company, it said in a statement to the Shanghai Stock Exchange.
It will issue 1.4 billion new yuan-denominated Shanghai-listed A shares to China Eastern Air Holding Company and the same amount in H shares listed in Hong Kong to a subsidiary of the parent, it said.
The total proceeds of the new share issuance will exceed seven billion yuan (one billion dollars), according to the statement.
An initial plan announced two weeks ago had the company issue 652.2 million new A shares and the same number of H shares to its parent in exchange for a three-billion-yuan bailout.
(Excerpt) Read more at ph.news.yahoo.com ...
Ping!
MU (China Eastern) just isn’t a very good airline, period. When I lived in Shanghai, for domestic flights i’d always take FM (Shanghai Airlines) over MU flying to many of the same destinations. FM is so much better for service, food, comfort, cleaness ... and prettier stewardesses :)
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