Jan. 3 (Bloomberg) -- China National Aviation Holding Co. will vote against a plan by China Eastern Airlines Corp. to sell a HK$7.16 billion ($916 million) stake to Singapore Airlines Ltd. and its parent.

``We believe other minority shareholders will also vote against the deal,'' said Gao Jianming, a Beijing-based spokesman for China National Aviation, which owns 3.8 percent of China Eastern. China National also has a controlling stake in Air China Ltd., China Eastern's biggest rival.

China Eastern today defended plans to sell a minority stake to Singapore Airlines saying criticism by China National that the sale price was too low was biased. Air China's parent last year partnered with Cathay Pacific Airways Ltd. to consider making a bid for China Eastern and use its Shanghai hub to further their dominance of the world's second-largest aviation market.

``As long as the Singapore Airlines deal is scrapped, Air China wins,'' said Jim Wong, an analyst at Nomura International in Hong Kong. ``China National has been trying to talk down the deal and sway the minority shareholders to vote against for several months.''

Singapore Airlines, the world's second-largest carrier by market value, wants to buy a stake in the Shanghai-based carrier to expand into the world's most populous nation and fastest- growing aviation market.

Counter Bid

The new shares will be sold to Singapore Airlines and its parent Temasek Holdings Pte at HK$3.80 apiece, a 53 percent discount to yesterday's closing price. Voting on the sale to the world's most profitable airline takes place Jan. 8.

``If we do offer a counter bid, we would offer what the current deal is lacking,'' Gao said in a phone interview today.

Singapore Airlines and parent Temasek Holdings in September agreed to buy a 24 percent stake in China Eastern after more than a year of talks. China Eastern's parent company will also invest HK$4.2 billion to maintain its majority under the deal.

China Eastern today defended the proposal and asked minority owners to support the deal.

``Concerns over our introduction of strategic investors lack independence and objectiveness,'' China Eastern said today in an e-mailed statement. The airline hasn't received any alternative proposals from other carriers.

To contact the reporter on this story: Irene Shen in Shanghai at ishen4@bloomberg.net.

Last Updated: January 3, 2008 01:52 EST