Etihad offers to invest in Jet Airways at discounted rate of Rs 150/share

Etihad offers to invest in Jet Airways at discounted rate of Rs 150/share Etihad Chief Executive Tony Douglas has written to State Bank of India on the restructuring plan for the airline

Companies News: Etihad Airways has offered to pick up shares of debtladen Indian carrier Jet Airways Ltd at a 49 per cent discount and to immediately release $35 million after certain conditions are met, CNBCTV18 reported on Wednesday.

Shares of Jet Airways, in which Etihad already owns a 24 per cent stake, tumbled as much as 7.5 per cent to 271.75 rupees in their biggest intraday drop since early December.

The Abu Dhabi carrier has offered 150 rupees for each Jet share, CNBCTV18 said, citing a letter from Etihad's CEO. Tony Douglas has written to the State Bank of India (SBI), Jet's biggest lender, on the restructuring plan for the Indian airline, the report added.

The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors, at a time when intense pricing competition, a weak rupee and rising fuel costs are weighing on the broader airline sector in the country.

Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject $35 million if some conditions are met, the CNBC-TV18 report cited Douglas as saying in...read more

→News Source: BS / Business Standard�