Deccan Aviation board not to consider KF merger today

According to Newswire 18 reports, Deccan Aviation's Head has said that its board will not think over Kingfisher merger today. The Deccan Aviation board will meet today to consider Accenture's report on synergies, Newswire 18 had earlier reported.
The board of Deccan Aviation will meet today to study the possibility and feasibility of a merger with Kingfisher Airlines.This is what, Amrish Shah, the ED of PwC had to say on the modalities of the merger.
Amrish Shah, ED, PwC in an interview with CNBC-TV18 said, "Generally the key issue is that the losses in both the airlines are not possible to be transferred on merger per say. So that will be the critical question that the board will have to look in because you're giving up a hidden asset in that sense. Either of the merging companies would lose the loss. The only other way, one can look at it is can they look at demerging the aviation business out of these companies and look at demerging it into the other company...."
19/12/07 Newswire 18/Moneycontrol.com

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Categories: Kingfisher Dec 2007, Simplifly Deccan Dec 2007