Jet Air shares yo-yo on stake sale news

Hindustan Times (Patna) - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

NEW DELHI/MUM­BAI: Af­ter surg­ing over 6% to hit a fresh 52-week high of R590, shares of Jet Air­ways re­tracted and set­tled with a loss of over 5% fol­low­ing heavy profit-book­ing on Tues­day amid spec­u­la­tion that Abu Dhabi-based Eti­had was set to make an in­vest­ment in In­dia’s No 2 car­rier.

The stock fi­nally ended the day at R527.15, down 5.2% from its pre­vi­ous close on the Bom­bay Stock Ex­change (BSE), while at NSE, the stock closed 4.5% lower at R530 af­ter touch­ing an in­tra-day high of R594.

Top government sources con­firmed Jet was dis­cussing a stake sale to Eti­had, but a se­nior Jet Air­ways of­fi­cial re­frained from an­swer­ing queries on the mat­ter, say­ing the com­pany would not com­ment on spec­u­la­tive re­ports, one of which put the es­ti­mated deal value at R1,600 crore.

Jet has been in the thick of spec­u­la­tion af­ter the government al­lowed for- eign di­rect in­vest­ment (FDI) in avi­a­tion com­pa­nies this year.

Eti­had’s chief ex­ec­u­tive of­fi­cer said on Tues­day that the air­line was in talks with un­spec­i­fied In­dian air­lines.

“We're in­volved in ne­go­ti­a­tions in In­dia,” James Ho­gan said in an in­ter­view broad­cast on Bloomberg-UTV news chan­nel. He de­clined to give de­tails.

Over the last one month the Jet Air­ways scrip has risen 61.6%, as of Tues­day's close, on spec­u­la­tion about the pro­moter look­ing out for of­fload­ing a stake.

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