Cathay Pacific Buys Stake in Rival: Hong...

Cathay Pacific Buys Stake in Rival: Hong King’s flag carrier Cathay Pacific Airways and its parent company, Swire Pacific, bought a 35% stake in rival Dragonair, neutralizing the threat posed by the tiny but aggressive competitor. Swire, which holds 50.23% of Cathay, paid $3.7 million (HK $29 million) for a 5% stake; while Cathay paid $37.7 million (HK $294 million) for a 30% holding. In a related move, state-owned China International Trust & Investment Corp. raised its Dragonair stake to 38% from 16.6%.