Wednesday, April 12, 2006

Govt yet to decide on single IPO for Air India, IA

New Delhi: The Government is yet to take a decision on whether Air India and Indian Airlines should have a simultaneous initial public offering (IPO).
"The merchant bankers working on the IPO for the two airlines have sent various interim reports to the Government. They have suggested many things, including looking at postponing the initial offering till such time as both airlines have new aircraft. This, the merchant bankers feel, will help get a better valuation. The Government, however, is yet to take a decision on the various reports received," a senior Government official said.
When contacted, the Minister for Civil Aviation, Mr Praful Patel, refused to comment on which route the Government felt the airlines should adopt. "The merger is on the cards and will happen this year itself," he said. The two airline boards have already cleared the proposal for tapping the market with an IPO. The two airlines are likely to divest 20-25 per cent of the stake.
11/04/06 Hindu Business Line
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