Sept. 25 (Bloomberg) -- China Eastern Airlines Corp. was on course for its biggest fall in six years in Hong Kong trading after Cathay Pacific Airways Ltd. said it wouldn't seek to rival Singapore Airlines Ltd.'s bid for a stake in the airline.
The carrier plunged 13 percent to HK$7.60 in pre-market trading in the city and 9.9 percent to 19.78 yuan at 9:57 a.m. in Shanghai. Cathay Pacific and Air China Ltd.'s parent have scrapped plans to bid for a stake in China Eastern, the Hong Kong-based carrier said last night.
Cathay Pacific's move ended speculation about a takeover battle that had sent China Eastern's Hong Kong-listed shares up 51 percent last week. Singapore Airlines and parent Temasek Holdings Pte agreed to buy a 24 percent stake in the carrier for $918 million earlier this month to expand its presence in the world's second-largest aviation market.
``If a player as strong as Cathay can be made not to pursue this, I don't think there will be any more hindrance to the deal,'' said Rohan Suppiah, an analyst at Kim Eng Research Pte in Singapore, who has a ``buy'' rating on Singapore Airlines.
Cathay Pacific fell 5.3 percent to HK$21.50 in Hong Kong pre-market trading, while Air China slid 7.1 percent to HK$11.00. Singapore Airlines rose 1.1 percent, the most in two weeks, in Singapore to S$19.00.
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