American Airlines is in advanced talks to buy a $200 million stake in Asia's biggest airline China Southern, reports said Thursday, as it looks to get a shoe-in to the country's huge aviation market. The Texas-based company plans to take the stake in the Chinese firm's Hong Kong-listed shares through a private placement, Bloomberg News reported, quoting people familiar with the matter.
China Southern suspended its stocks traded in both Hong Kong and Shanghai on Thursday morning pending a "possible major strategic cooperation", exchange statements said.
China Southern has a total market capitalisation of HK$15 billion ($2 billion) in Hong Kong, exchange data shows.
If the deal goes through, American will be able to take a seat at the board of China Southern without voting rights.