Jet Airways falls 5% on concerns over Etihad deal

Moneycontrol Bureau

Shares of Jet Airways fell over 5 percent to Rs 538.85 after news reports stated that its stake sale deal with Etihad Airways could be in jeopardy.

CNBC-TV18 has reported quoting sources that Etihad has requested for an option to increase its stake to 49%, if Jet promoters plan to exit in future. Naresh Goyal, chairman Jet, is not keen to include this clause in the share purchase agreement. Also, Eithad is keen to have four members on Jet's Board, which is again not gone well with Jet Air.

This has heightened Etihad's concerns regarding the deal.

Sources indicate that promoters and senior management of Jet Air are currently in Abu Dhabi to conduct and conclude negotiations. Sources also inform that the Indian government may also intervene to finalise the deal.

Promoters through Tail Winds hold 79.99 percent stake in the company as of December 31, 2012.

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