GoAir in talks with Paramount for merger

Aviation space in India is getting hotter by the day. Barely a week after Kingfisher and Air Deccan announced their alliance, Nusli Wadia Group's GoAir and Chennai based Paramount Airways are said to be in talks to meet the challenges, post-mega mergers in the Indian aviation space.
GoAir may be open to divesting around 40% stake. Paramount Airways has placed a $100-150 million cash buyout proposal to the former. Sources say that Paramount Airways may offer stake to the Wadias in the merged entity.
However, unlike Jet and Kingfisher, Paramount is keen on merging GoAir's operations under its brand. Paramount would also be looking at funding the deal through a combination of equity placement and debt, according to sources.
For Paramount Airways too the deal will make definite sense. Close to saturating the southern market, Paramount has already unveiled plans to enter the western region next year. The deal-making may smooth Paramount's proposed foray into the western market.
05/06/07 Times Now.tv

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Categories: GoAir Jun 2007, New Jun 2007, Paramount Airways Jun 2007