Air China has no plans to take over Cathay Pacific: Media report

Air China is Cathay Pacific's second-largest shareholder, behind manager Swire Pacific Ltd with a 45 per cent stake. PHOTO: REUTERS

HONG KONG (REUTERS) - Air China has no plans to take over Hong Kong's Cathay Pacific Airways, an independent director of the state-owned Chinese carrier told the South China Morning Post newspaper.

"Based on what I know, I wouldn't think that is anywhere on the agenda, no way," Air China non-executive director Stanley Hui told the newspaper when asked if the carrier, a 30 per cent shareholder, might seek to buy Cathay Pacific outright.

The Hong Kong airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.

Cathay Pacific chairman John Slosar last week announced plans to step down in November, less than three weeks after chief executive officer Rupert Hogg left amid mounting regulatory scrutiny.

Air China is Cathay Pacific's second-largest shareholder, behind manager Swire Pacific with a 45 per cent stake.

Long-time Swire executive Patrick Healy was last week appointed as Mr Slosar's replacement.

Some analysts have said it would be logical for Air China to take over the remainder of Cathay Pacific in the future.

However, Mr Hui told the South China Morning Post that any Beijing-led moves that changed Cathay Pacific's ownership would send a wrong signal to foreign investors.

Air China could not be reached immediately for comment.

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