East Airlines H-shares rise more than 10%

China Securities network East Airlines and the implementation of the merger plan 13th duplicate. Following a stock-trading trend, China Eastern (00670.HK) H shares surged 12.64% in the opening, but the shares fell after the opening.　　As at 10:12, the shares reported 1.91 Hong Kong dollars, or 9.77%. China Eastern (00670.HK) announced the implementation of the merger with the Air Navigation (600591.CN) plan. First, the Eastern Airlines proposed to 10 investors, issued up to 1.35 billion new A shares, per share of not less than 4.75 yuan, more than a discount before the suspension of 10.9%, raise more than 6.41 billion yuan, of which the Eastern Airlines Group subscription not more than 490 million shares. At the same time, the Eastern Airlines, with a share of not less than 1.4 yuan, before the suspension of 19.5%, to the Eastern group to allocate up to 490 million shares of H-shares, to raise 686 million yuan.　　A total of two placements to raise 7.02 billion yuan. Thereafter, China Eastern will take the shares of the 1.3 shareholder's shares for 1 shares and issue up to 1.695 billion shares, exchanging all the shares issued by the airlines.　　The airline shareholder may also exercise the cash option to charge 5.5 yuan in cash per share of the shares. After the merger, the Eastern Group's shareholding in China Eastern Airlines will be 74.65% diluted to the 59.93%;a share of public shareholding to the 26.17%;h shares to 13.9%.　　East Airlines 13th in the mainland, Hong Kong, a duplicate. For the merger effect of China Eastern Airlines, the views of the big bank are different. Merrill Lynch downgraded its eastern airlines rating to "buy" with a target price of HK $2.6. The report pointed out that China Eastern airlines to carry out the merger and acquisition, recently received the central government nearly 7 billion yuan assistance, and further allotment of 7 billion yuan, new funds plus the integration of rivals can effectively restart the aviation business, access to the Shanghai market (share 47%) control.　　With the use of a-shares to adjust business and capital, H-Share shareholders will be more favorable. However, UBS said that the merger of the Eastern Airlines and the upper airlines was mainly to meet the challenges, with early focus on airline and revenue integration, so the merger had little to say about cost-effectiveness. To maintain the China Eastern Airlines "sell" rating, the target price of HK $0.5.