China National Aviation (CNAC) has cut its stake in Cathay Pacific Airways in an effort to raise funding for its HK$1.97 billion ($254 million) purchase of a 36% controlling interest in Dragonair. CNAC has sold 90 million shares for around HK$1.26 billion, reducing its Cathay holding from 4.1% to 1.5%. The move is seen as increasing the prospect for direct competition between Cathay and its former sister carrier, Dragonair.
Source: Flight International