American Air in negotiations to buy stake in China Southern

American Airlines is in talks to acquire a stake in China Southern, according to a statement by Asia’s biggest carrier by passengers. The negotiations are over "a possible major strategic cooperation with American Airlines, Inc. involving, among others, proposed issue of shares of the company and other business cooperation," the Guangzhou-based operator said in a stock exchange filing on Sunday. Shares of China Southern will resume trading in Hong Kong on Monday. They have been suspended since March 23, after Bloomberg News reported that American will likely make an investment of about E$200m in China Southern’s Hong Kong-listed shares through a private placement. American would nominate an observer without voting rights to the Chinese company’s board, according to people familiar with the matter. The companies haven’t reached a binding or definitive agreement, and the cooperation may or may not proceed, China Southern said. For American a deal would strengthen its presence in the Chinese market after rival Delta acquired a minority stake in China Eastern Airlines in 2015. China Southern would be the last of the nation’s top three airlines to bring in a non-mainland Chinese strategic investor. Cathay Pacific Airways, which is based in Hong Kong, owns about 18% of flag carrier Air China.<br/>