Air China - Shenzhen Airlines

HONG KONG, Dec 1 (Reuters) - Shares in [Vous devez être inscrit et connecté pour voir ce lien] , the world's most valuable airline, jumped as much as 10 percent to a 19-month high on Tuesday, boosted by speculation that the company would take over Shenzhen Airlines.
The stock rose 8.6 percent to HK$6.07 after easing from a session high of HK$6.15, outperforming a 0.6 percent gain in the benchmark [Vous devez être inscrit et connecté pour voir ce lien]
Privately owned Shenzhen Airlines said Li Zeyuan, a senior adviser who effectively controls the airline, was under police investigation, although the airline continued to operate normally.
Air China Company Secretary Huang Bin told Reuters that Air China, as a shareholder of Shenzhen Airlines, would continue to support the carrier to maintain normal operations.
He declined to comment on whether Air China would take over Shenzhen Airlines.
Li controls a 65 percent interest in Shenzhen Airlines, the country's fifth-largest carrier with a 7 percent national market share.

Air China has become the majority stakeholder in Shenzhen Airlines, after it purchased additional capital in the company with 682 million yuan ($100 million).

The acquisition increases the flag carrier's stake in Shenzhen Airlines to 51% from 25%, and its share of the airline's registered capital to 414 million yuan from 75 million yuan, Air China tells the Hong Kong stock exchange.

Air China's chairman Kong Dong said earlier this month that the airline was interested in taking over Shenzhen Airlines, and was conducting an audit of its assets.

In December 2009, Air China took over Shenzhen Airlines' management after its major shareholder Li Zeyuan was taken by the police for questioning.

Air China says its acquisition of a majority stake in Shenzhen Airlines "would be more conducive to the business cooperation" between the two carriers.

It would also help improve their respective international and domestic networks, and "consolidate their market positions in the Peal River Delta region", says Air China.

After the transaction, Li's company Shenzhen Huirun Investment's stake, in Shenzhen Airlines, was reduced to 24% from 65%.

Shenzhen state-owned Total Logistics' stake grew to 25% from 10%, after the logistics firm purchased an
additional stake for 348 million yuan, says Air China.