CNAC plans counter offer for China Eastern -paper

HONG KONG, Jan 3 (Reuters) - The parent of Air China (0753.HK) plans a HK$5-per-share counter offer for rival China Eastern (0670.HK), representing a 32 percent premium above Singapore Airlines' (SIAL.SI) proposal of HK$3.8 per share, Mingpao Daily reported on Thursday.

China National Aviation Corp (Group) Ltd (CNAC), parent of Air China, the world's biggest airline by stock market value, had said Singapore Airlines and its parent Temasek's [TEM.UL] offer to buy a combined 24 percent stake in China Eastern (CEA.N) (600115.SS) for US$920 million was too low.

CNAC, which has more than 12 percent of China Eastern's Hong Kong shares, has decided to vote against the proposal in a shareholder meeting on Jan. 8, the newspaper quoted unidentified sources as saying.

"If taking the synergy from the co-operation between China Eastern and CNAC, (CNAC's) takeover price will be much higher than HK$5 per share," a source told the newspaper.

Air China was not immediately available for comment.

For related story please read [ID:nHKG331933].

Shares of China Eastern rose more than 4 percent on Wednesday to close at HK$8.05. (Reporting by Alison Leung, editing by Ken Wills)