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 Malaysian To Suspend Shares Amid Tie-Up Doubt

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PostSubject: Malaysian To Suspend Shares Amid Tie-Up Doubt   Tue May 01, 2012 6:43 pm

Shares of Malaysia Airlines will be suspended from trading on Wednesday due to a pending corporate announcement, two sources said on Tuesday.

One of the sources said Malaysia Airlines was expected to announce the cancellation of plans for a share swap with budget carrier AirAsia. Both of the sources have direct knowledge of the proposed deal.

The proposed USD$364 million tie-up has encountered strong resistance from the 20,000-strong MAS union, which voiced concern that the deal resembled a takeover by AirAsia founder Tony Fernandes and his brand of aggressive cost cutting.

(Reuters)

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