China Eastern signed an agreement to sell a combined 24 percent stake to Singapore Airlines

and Temasek at HK$3.8 on September 2, 2007.

CNAC, the parent company of Air China, which owns 12.07 % stake in China Eastern, said on December 30, 2007 that it can make a higher offer of HK$5 per share if stakeholders rejected a Singaporean deal.

China Eastern Chairman Li Fenghua reiterated that the company will not merge or restructure with Air China under any circumstances, after a sales proposal to sell stakes to Singapore Airlines was rejected by 77.6 percent shareholders on Tuesday.

China Eastern (Stock: sh600115) and Air China(Stock:sh601111) are at the same level in terms of operation, management and market performance, so we will not consider introducing Air China as our strategic partner no matter how high the price they can offer,” said Li at a press briefing after the shareholders meeting.
 
Around 77.6 percent of China Eastern's shareholders on Tuesday rejected a proposed sale of 24 percent stake to Singapore Airlines and Lentor investment Pte Ltd, a wholly owned subsidiary of Temasek.

Many shareholders have expressed their objections in the three-hour shareholders meeting held in Shanghai Hangyou Hotel, near China Eastern's headquarters.

Yang Peng from Rongtong Fund Management Co Ltd, the third largest shareholder of China Eastern's circulating shares, also voted down the deal and said that China Eastern can consider the proposal of Air China, who offer a higher price.

Singapore Airlines (SIA) said in a statement yesterday it was "disappointed" after China Eastern shareholders rejected the deal, but it "will continue to support the building of a relationship with China Eastern, noting that the airlines are still mutually willing to develop the relationship”.

China Eastern signed an agreement to sell a combined 24 percent stake to Singapore Airlines and Temasek at HK$3.8 on September 2.