China Eastern Airlines said on Thursday a USD$920 million stake purchase by Singapore Airlines and Temasek Holdings was a "final deal", sending shares in the airline skidding, as investors abandoned hopes of a higher bid.

The deal had been approved by Beijing and it would be unrealistic for minority shareholder in Air China to vote against the deal, Chairman of China Eastern Li Fenghua told a news conference on Thursday.

"Introducing strategic partners to China Eastern is a government decision... (If) Air China votes against it, that will be unrealistic," Li said.

The deal was the only one and was final, he added.

The market expected minority shareholders Air China and others would reject the deal at a vote on January 8.

China Eastern shares are now trading at 72 percent above Singapore Airlines and parent Temasek's offer of HKD$3.8 per share for the 24 percent stake, despite the stock ending down 12.7 percent at HKD$6.53 on Thursday.

"It is uncertain as to whether Air China will dump its shares in the airline in the market or make a counter offer," said Steven Cheng, associate director at Shenyin Wanguo.

Singapore Airlines and Temasek agreed in September to buy the stake to gain access to China's fast-growing and lucrative air network but the deal would need two-thirds minority shareholder approval in the extraordinary general meeting.

Singapore Airlines on Wednesday ruled out the possibility of raising its bid for the stake.

"That's the only proposal on the table," Ong Beng Teck, Temasek Managing Director, Investment, echoed on Thursday.

China Eastern also said on Thursday it expected to return to profit for the whole of 2007, while its market share in Shanghai would rise to more than 50 percent from the current 36 percent after the SIA deal.

"We expect to see profit for 2007. Next year will be even better," Li said.

China Eastern posted a net profit of CNY1.03 billion yuan in the first nine months, based on Chinese accounting standards.

It made a net loss of CNY306 million in the first half and losses of CNY3.3 billion in 2006, according to international accounting standard.