Cathay Pacific Seals Dragonair Buy-Out

Hong Kong's Cathay Pacific Airways said on Friday it would pay HKD$8.22 billion (USD$1.06 billion) in cash and shares to take over rival Dragonair in a long-expected deal that expands its access to the fast-growing mainland Chinese market.

Cathay, the world's seventh most valuable airline, has been frustrated by its limited position in mainland China, where its only passenger routes are to Beijing and Xiamen.

Dragonair, which flies to 23 mainland cities including the lucrative Shanghai market, has in turn relied on Cathay to feed it international traffic bound for China

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