Cathay Talks Are Over

Business World

Thursday, December 10, 1998

HONG KONG — Cathay Pacific Airways Ltd. reiterated yesterday that talks to acquire a stake in Philippine Airlines, Inc. were over.

"As far as we are concerned this is behind us," chief operating officer Philip Chen told reporters.

The Philippine government has been trying to resurrect talks between Cathay and PAL after Cathay pulled out of talks last week. "We have had no formal approach," Chen said yesterday.

Asked whether Cathay would be interested in buying certain parts of PAL, Chen said: "We actually have not come down to those details."

He declined to say how much Cathay had spent on due diligence work on PAL. "Cathay has put in a lot of resources — financial and manpower," he said.

Asked whether Cathay was looking at other acquisitions, Chen said the carrier's policy had “always been very prudent.”

“We do not go around hunting or shopping for shares." he said.— Reuters