Cathay Pacific studies bid for HNA's Hong Kong carriers

Cathay Pacific is studying a bid for stakes in two smaller Hong Kong airlines backed by embattled Chinese conglomerate HNA Group, people with knowledge of the matter said. Cathay Pacific has held preliminary talks with HNA about acquiring minority stakes in Hong Kong Express Airways and Hong Kong Airlines. A couple of local tycoons have also been considering investments in Hong Kong Airlines. HNA has already trimmed one of the country’s biggest debt piles by selling off dozens of assets from hotels to stakes in aircraft leasing companies. Its plan to sell almost a third of its stake in Hong Kong Airlines was held up last year after the sudden death of HNA co-chairman Wang Jian. The suitors’ discussions with HNA have been progressing slowly, and there’s no certainty they will result in a transaction, said the people. <br/>