New Delhi: Was Jet Airways' stake sale deal with Abu Dhabi's Etihad cleared following pressure from diplomatic quarters? It has now emerged that India's envoy to UAE, T P Seetharam, had written a note to the finance ministry last month pushing for the deal — a week after market regulator Sebi issued a show-cause notice to Etihad on the key issue of "effective control" of Jet after the Abu Dhabi-based carrier's $379-million deal to pick up 24% in Jet.
Sebi had on February 14, 2014, issued the show cause notice over reported violation of takeover norms as it felt there was a "change in control" at Jet after the deal. The regulator wanted to know why action should not be taken on this issue — something that could have derailed the Jet-Etihad deal, the first instance of investment by a foreign airline in an Indian carrier after the FDI rules were changed.
The Sebi notice was issued after CCI (Competition Commission of India) believed that Etihad was in joint control of Jet with its promoter Naresh Goyal.
07/03/14 Times of India
To Read the News in full at Source, Click the Headline
Sebi had on February 14, 2014, issued the show cause notice over reported violation of takeover norms as it felt there was a "change in control" at Jet after the deal. The regulator wanted to know why action should not be taken on this issue — something that could have derailed the Jet-Etihad deal, the first instance of investment by a foreign airline in an Indian carrier after the FDI rules were changed.
The Sebi notice was issued after CCI (Competition Commission of India) believed that Etihad was in joint control of Jet with its promoter Naresh Goyal.
07/03/14 Times of India
