Jet Air up 6% as Etihad deal gets closer

Shares of Jet Airways climbed over 6 percent to Rs 569 after Etihad bought over three of its slots at Heathrow Airport for USD 70 million, thereby consolidating it plans to invest in Jet Air.

Though deal talks are on since September last year, there has been no conclusion on it as yet and both parties are in final stage of negotiations. 

Etihad and Jet, both  have said that discussions on the deal are still on.

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According to CNBC-TV18 sources, Jet Air is learnt to have revised certain clauses pertaining to the Etihad deal. The airline has agreed to give four seats to Etihad on its Board.

 Jet Air may also be open to price negotiations as well. The Jet-Etihad deal valuation is likely to be revised, said exclusive sources.

Earlier, the deal was stuck when Etihad said that instead of two it would want four members of Jet's board. It had also said that in future

The deal was likely to be announced last week, but Hamed bin Zayed al-Nahayan, chairman of Etihad Airways, told media that there were certain issues to be dealt with, before signing agreement with Jet Air.

Since September last year, reports of  likely Jet-Etihad started doing rounds and it was only in December that Jet confirmed about it, saying that it is still in negotiation phase. "As and when the deal will happen, we will make an announcement," it had said.

Etihad is keen to pick up 24 percent stakes in Jet Air at around USD 330 million. Both parties still need to discuss issues related to Board composition and revenue sharing model.