Shareholders of China Eastern have rejected a deal to sell part of the airline to Singaporean investors, but agreed to allow two Singaporean Airlines managers on its board.

A group of investors including Temasek, the Singaporean government-controlled investment company, planned to buy a 24 percent stake in China Eastern.

They were offering 3 Hong Kong dollars 80 a share, but shareholders considered it inferior to that from AIR CHINA'S parent, which offered 5 HK dollars a share.

Despite the bit falling through, shareholders approved a separate resolution appointing Singaporean Airlines' chairman and its chief executive to China Eastern's board.

China Eastern officials wanted the tie-up to tap into the experience of the Singaporean carrier.

Li Fenghua is chairman of China Eastern and president of its state-owned parent.

The purpose of having a strategic investor on board is not to solve financial problems. We can benefit from their management, make a name for our brand, and increase our competitiveness. That's the most important thing.

But the deal was opposed by China National Aviation, the parent of flagship carrier Air China.

China National Aviation on Monday said it would table its superior offer of 5 Hong Kong dollars a share within two weeks.

The company's offer for 30 percent of China Eastern's Hong Kong shares is about 11 billion Hong Kong dollars, against 7 billion offered by the Singaporeans.