The Singapore-quoted shipbuilder said its parent was in the process of planning a significant transaction that could impact on its own stock.
Today reports from the 21st Century Business Herald suggest an investment and operating platform would be established by the two companies.
Analysts at Barclays Capital said the structure, akin to the Singaporean sovereign wealth fund, would have a holding structure for assets with an emphasis on returns.
“In our view, the latest news increases the potential for consolidation to raise the profitability of proposed merged companies,” Esme Pau and Clement Chen of Barclays said.
They add the proposed structure would introduces higher managerial accountability.
Reports emerged last week that Cosco and China Shipping executives had been tasked with merging the two giant companies. Shares in China Cosco, Cosco Pacific and others were suspended last week.
Cosco is the world’s second largest shipowner behind AP Moller-Maersk of Denmark, according to Clarksons Research Services. China Shipping is fifth, after NYK and MOL of Japan.
Talk of Cosco and China Shipping merging has surfaced in the market several times. The companies already have a cooperation agreement in place.
