India's Jet sees shares slump on Etihad delay claim

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Shares of Jet Airways India Ltd dropped as much as 5.8 percent on Thursday after Reuters reported a stake sale to Abu Dhabi's Etihad Airways could be delayed until at least August, two dealers said.

The delay could come as Etihad is seeking assurances following setbacks for several Gulf investors in India, two sources familiar with the talks told Reuters.

Jet shares were down 3.2 percent as of 0400 GMT.

Etihad, which is expanding globally, has been in talks over an equity stake in Jet since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 percent in local carriers.

The Gulf airline is eyeing a 24 percent stake, valued at about $330m, according to sources aware of the matter.

The deal, which would inject much-needed funds into Jet and help Etihad expand its reach into the vast Indian aviation market, has slowed over concerns of past failed forays by Gulf investors into India and the Abu Dhabi firm's demands to protect its potential investment, the sources said, speaking on condition of anonymity as the matter is not public.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Risky business

Risky business

Libya’s stock market is one of the smallest in the Arab world...

'The gold rush is over'

'The gold rush is over'

Many blue chips are reviewing their emerging-market strategies...

Money talks for Gulf SWFs

Money talks for Gulf SWFs

The Gulf’s oil-rich sovereign wealth funds are seeking to increase...

2
Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams