=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/02/19/f= inancial1447EST0156.DTL ---------------------------------------------------------------------- Wednesday, February 19, 2003 (AP) China Airlines shareholder wants to sell up to 30 percent stake (02-19) 11:47 PST TAIPEI, Taiwan (AP) -- The largest shareholder in Taiwan's biggest commercial carrier, China Airlines, said Wednesday it plans to sell between a 20 percent and 30 percent stake in the airline by the end of June. The shareholder, the China Aviation Development Foundation, currently has a stake of 71 percent. The sale would be part of government efforts to privatize the airline before the end of the year, foundation chief secretary Lin Chun-cheng said. Stalled efforts to reduce the foundation's management control were reviv= ed after a China Airlines jet crashed en route to Hong Kong from Taipei last May, killing all 225 people aboard. Following the crash, the airlines' 10th fatal accident since 1970, Taiwan Premier Yu Shyi-kun pledged to privatize the carrier within two years. Critics have blamed the airline's confusing ownership structure and lack of accountability for its poor safety record. According to Lin, the foundation's board -- chaired by Transportation Minister Lin Ling-san -- will select a financial adviser for the sale before the end of March. The goal is to initially sell a 20 percent to 30 percent stake to strategic investors before the end of June, he said. "We will put the investors under a six-month observation period after th= ey sit on the board," Lin said. "The foundation may sell more shares to the investors if they demonstrate strong management skills." Both local and foreign investors are welcome, he said. According to Lin, the foundation's ultimate plan is to lower its stake in China Airlines to below 35 percent and pull out of the airline's management before the end of the year. =20 ---------------------------------------------------------------------- Copyright 2003 AP