Telefonica Halves Its China Unicom Stake to 5%
Telefonica SA (NYSE: TEF) said it has sold half of its stake in China Unicom Ltd (NYSE: CHU, SHA: 600050, HKG: 0762), worth $1.4 billion, paring its holding in China's second largest wireless carrier to 5%, Bloomberg reported. Spain-based Telefonica, which sold the stake to ease its debt burden amid the country's economic crisis, agreed not to sell any further China Unicom shares for 12 months.
Eastern Airlines Eyes Debt Ratio Cut
China Eastern Airlines Corp (NYSE: CEA, SHA: 600115, HKG: 0670), the nation's second largest carrier by passenger traffic, will try to reduce its liability over asset ratio to 70% by the end of 2015, chairman Liu Shaoyong told Yicai.com. The ratio was 80.27% as of the end of 2011. Liu expects China's recovering air travel market to make up for losses from the declining European market. The Shanghai-based airline will use more large planes and step up cooperation with international carriers in 2H, Liu added.
Bright Dairy in Rights Offer to Fund ¥1.4b Plant
Bright Dairy & Food Co (SHA: 600597) said it plans to conduct a private placement aimed at raising ¥1.42 billion to build a plant in Maqiao in suburban Shanghai. Bright Dairy said it proposed the private placement plan because it had trouble raising funds from other sources. The project, expected to take 30 months to complete and produce 600,000 tons of dairy products worth ¥4.65 billion annually once operational, will be the largest of its kind in China.
$1 = ¥6.37