Spice Jet scrip takes off on takeover buzz

Low-Cost airline, SpiceJet, has been riding high on rumours of a possible takeover by the Tatas or the Anil Ambani-led ADAG group. SpiceJet, the airline that started life as ModiLuft, has been the subject of much speculation on acquisition, especially after the consolidation in the Indian aviation sector. It is perceived as one of the better-run airlines that has grown on an even keel, without the reckless expansion that has been the hallmark of competing carriers. The Tatas already own a 6% stake in the company, through its investment arm, and this has fuelled talk of an increase in shareholding. A Tata spokesperson denied any such move. Yet, the market is unconvinced, and the SpiceJet stock has been on an upswing over the past month on rumours that one of the corporates would eventually pick up the roughly 26% held by the Kansagra family, Ajay Singh and other promoters. SpiceJet has climbed 12% in the past one week to close at Rs 96.10 on Tuesday.
09/01/08 Cuckoo Paul & Apurv Gupta/Economic Times

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Categories: SpiceJet Jan 2008