China Eastern offers $1.3 billion for Shanghai Airlines

"China Eastern Airlines has formally offered to take over Shanghai Airlines in a 9 billion yuan ($1.3 billion) deal as it seeks to increase its market share, lower costs, and return to profitability. The carrier says in a statement to the Hong Kong stock exchange that it plans sell 7 billion yuan worth of new shares to fund the acquisition. It will do this by selling 1.35 billion Shanghai-listed shares at 4.75 yuan apiece, and 490 million Hong Kong-listed shares for at least HK$1.40 apiece to its parent, China Eastern Air Holding." Next.