Aug 8 (Reuters) - Trading in shares ofairlines Malaysian Airline System and rival AirAsia were suspended on Monday.
There were no statements issued on the suspension as at8:40am local time (0040 GMT).
Local media over the weekend reported that state strategicinvestment arm Khazanah Nasional , MAS' largestshareholder with close to a 70 percent stake, would buy a sharein AirAsia, Asia's largest low-cost carrier.
AirAsia would in turn subscribe to new MAS shares,subsequently forming a collaborative partnership between bothairlines.
Khazanah and AirAsia issued statements on Sunday denyingthat Tony Fernandes and Kamarudin Meranun, AirAsia's twofounders, would emerge as the single largest MAS shareholderbecause of the exercise. (Reporting by Min Hun Fong; Editing by Liau Y-Sing)