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Singapore Air -still in talks to buy China Eastern

Mon Mar 17, 2008 7:45pm EDT

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SINGAPORE, March 18 (Reuters) - Singapore Airlines (SIAL.SI), the world's second-biggest carrier by market value, said on Tuesday that it was still in talks with China Eastern over the acquisition of a stake in the mainland carrier.

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"We are still in talks with China Eastern. We will continue a dialogue with them, but the question of when we may go back to shareholders and how that will take place is a question for China Eastern and not for us," the spokesman for Singapore Airlines, Stephen Forshaw said.

Singapore Airlines' bid for a stake in China Eastern was rejected by the mainland carrier's shareholders in January after rival Air China made a counter-offer.

But China Eastern Airlines (600115.SS) on Feb 26 formally rejected a proposed tie-up with flag carrier Air China (601111.SS), and pledged to instead continue seeking another strategic investor.

Singapore Airlines has three of the superjumbo A380 on service, with another 16 on order and options for six more, and is planning to put the aircraft on daily flights to Tokyo from May 20.

(Reporting by Daryl Loo; Editing by Tomasz Janowski)



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