Jet to clinch Sahara deal today

New Delhi: Jet Airlines and Air Sahara are likely to ink the final deal today after arbitration panel hearing.
The final seal on the deal could be put today. Both parties will come up with their final arguments before the arbitration tribunal today.
The three-member arbitration panel, comprising British judge Lord Stein, retired Supreme Court judges Justice S P Bharucha and Justice Jeevan Reddy, told both the parties to talk and resolve differences.
Sources have told TV18 Network, that the merger date could be announced in two weeks.
The deal was re-struck at Rs 1450 crore, which is less than Jet's January 2006 offer of Rs 2200 crore.
Sources said that Jet has deducted Rs 350 crore on account of creditors' dues.
Jet has already paid Rs 680 crore to Air Sahara – Rs 180 crore for reviving the airline and Rs 500 crore as bank guarantee.
While there was no official confirmation from either side about the financial details of the deal, sources said that a creditor's deduction of over Rs 200 crore is not being accepted by Jet, which is the reason behind the drop in Air Sahara's enterprise value from about Rs 2,300 crore, worked out when the deal was first struck, to Rs 2,050 crore now.
12/04/07 CNN-IBN

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Categories: Air Sahara Apr 2007, Jet Airways Apr 2007