Airlines shares fall on bid rejection

Shares in both Cathay Pacific and Air China have fallen after both have revealed they are not planning to bid for a stake in China Eastern Airlines.

Cathay Pacific stocks have fallen 6%  while Air China lost 13%.

According to the BBC, shares in both airlines had been suspended amid speculation that they planned to team up and make a bid. Trading resumed later on in the day. A joint bid would have looked to block a planned deal between China Eastern and Singapore Airlines.

That deal which would see Singapore Air buy a 24% stake in China Eastern for a $918m (£453m)  price has been approved by the Chinese government.