The trade of a batch will be halted due 'a pending corporate announcement', according to a source.
KUALA LUMPUR: Shares of Malaysian Airline System (MAS) will be suspended from trade tomorrow, dual sources said, among speculation that a inhabitant carrier's proposed US$ 364 million (RM1.1 billion) share barter with AirAsia will be cancelled.Trading of a batch will be halted due to "a pending corporate announcement," according to a single of a sources, who declined to contend if a share barter will be scrapped.
The second source pronounced MAS will make known a cancellation of a understanding with a budget carrier. Both of a sources have direct knowledge of a proposed share swap.
Specul! ation th at a understanding would collapse has grown in new weeks as a plan encountered strong resistance from a 20,000-strong MAS union, that uttered concern that a tie-up resembled a takeover by AirAsia owner Tony Fernandes as well as his code of aggressive price cutting.
Under a understanding voiced in August, Tune Air, tranquil by AirAsia's Fernandes as well as his emissary Kamarudin Meranun, would take a 20.5% interest in MAS as well as dual board seats. In exchange, state investment arm Khazanah Nasional, a majority shareholder in MAS, would reason 10% in AirAsia.
The deal, formulated by Prime Minister Najib Tun Razak as well as sealed final August, was to assistance both carriers compete effectively against rivals like Tiger Airways as well as Singapore Airlines once a Southeast Asian open-sky process comes into outcome in 2015.
In February, MAS report! ed its w orst-ever detriment of RM2.5 billion (US$ 820 million) for ! 2011, sh ocking analysts who had expected a restructuring to limit losses.
MAS as well as supervision officials couldn't be reached for comment today because of a inhabitant open holiday.
CIMB was a confidant for both companies on a deal, promissory note sources said.
-Reuters
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