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Jet Airways refuses to comment on Etihad stake acquisition reports

27-Nov-2012 9:37 AM

Jet Airways, commenting on speculation Etihad Airways will acquire a stake in the carrier, stated (26-Nov-2012) "We are aware that recently there has been much speculation in the Press. The Company however cannot comment on such speculative reports". It added, “As and when we do undertake any strategic initiatives, Jet Airways will advise the concerned authorities and relevant exchanges accordingly.” initially outlined details of the speculation, alleging Jet Airways is close to selling a 24% stake to Etihad Airways in a potential INR2.2 billion (USD400 million) agreement. The deal would give Jet Airways a post-money valuation of around USD1.7 billion, more than twice its current market cap. According to media reports, talks between Etihad and Jet Airways cover not only investment, but technology and other operational partnership details and could be signed within 45 days. Etihad Airways has reportedly expressed interest in gaining access to the JetKonnect network. Etihad CEO James Hogan previously said, in Oct-2012, that it was examining opportunities for investment in India after receiving approaches. Etihad Airways, as quoted by Live Mint, stated: “Etihad Airways has identified equity investments in other airlines as an important evolution of our successful partnership strategy. Equity investment strengthens our relationships and allows us to work together with partners to identify revenue generation and cost management opportunities. It is our policy not to comment on such speculation. If or when we do make further investments of this sort, we will announce them in line with regulatory and commercial requirements". [more - original PR] [more - original PR - II]