Speculation on Air China seeking control of CX reemerges, with potential ownership change in the future. Both are below 5-yr P/B average, with CX favored in short term and Air China in long term.
Boomeranged on Fri, 15 Mar 2024 08:58
With the significant improvement in profit at Cathay Pacific in FY23 and the sustained recovery in international traffic, Air China has an even stronger reason to increase its stake in CX. Swire's solid presence in China also made it tempting to foster a more harmonious relationship with the government, providing more backing for Air China's taking control of CX ultimately.
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