China Southern said in talks to sell stake to American Air

China Southern Airlines is in advanced talks to sell a stake to American Airlines, according to people familiar with the matter. The negotiations focus on an investment of about $200m by Fort Worth, Texas-based American in China Southern’s Hong Kong-listed shares, said the people, asking not to be identified as talks are confidential. The sale likely would take place through a private placement, one of the people said. China Southern has a market value of about $10b. An investment in China Southern would allow American to strengthen its presence in a market that the IATA predicts will surpass the U.S. to become the world’s biggest in terms of passenger numbers by 2024. Delta acquired a minority stake in China Eastern Airlines in 2015. Under the discussions, American would nominate an observer without voting rights to the Chinese company’s board, the people said. Details of a deal are subject to change and a transaction could still fall through.<br/>