Mallya may go for total majority in Deccan

Mumbai: UB Group could strengthen its position in Air Deccan by raising its stake in the low cost carrier to 51% in the next few months—making the price warrior a subsidiary company of the group.
The Bangalore-based liquor conglomerate, which runs Kingfisher Airlines, bought a 26% stake in Air Deccan in early June and is on schedule to make an open offer for 20% more that opens next week. Besides this, sources say, other investors are willing to sell about 4-5% stake, taking the UB group holding up to 51%.
An absolute majority will enable the Kingfisher group to take major decisions to synergise operations of the two carriers. Airline sources said, one of the major decisions is expected to be in respect to whether the Air Deccan brand will be retained for future operations.
Asked about it, Kingfisher chairman Vijay Mallya said a decision on the issue will be taken only after a formal market evaluation.
16/07/07 Cuckoo Paul & Sudipto Dey/Economic Times

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Categories: Air Deccan Jul 2007, Kingfisher Jul 2007