SHANGHAI, March 23, SinoCast -- American Airlines has been in talks with China Southern Airlines, planning to spend around USD 200 million buying the latter's Hong Kong-traded shares; the investment represents 2% of market cap of the Chinese airline company.
American Airlines will be an observer in the board of directors of China Southern Airlines after the investment. Nevertheless, the seat has not voting rights.
Sources show that details of the deal would change and it is unknown whether the two will reach an agreement or not.
Comments by American Airlines are not available.
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