The Hindu Business Line : Jet-Sahara deal may go through

There were hectic parleys throughout Thursday between the top officials of Jet Airways, followed by a meeting with the Sahara representatives. Though nothing was given out officially, sources indicated that the "deal will definitely go through and both parties were trying to see how best to work it out."

The sources also said that Sahara had possibly agreed to a slight reduction in the overall deal size of Rs 2,217 crore.

High drama

High drama marked the finalisation of Air Sahara's sale to Jet Airways here on Thursday.

The action began early at the Ashoka Suite on the 16th floor of the Maurya Sheraton Hotel. It was here that Mr Naresh Goel, Chairman of Jet Airways, Mr Saroj Datta and top officials of Jet Airways were deciding on the strategy to seal the deed. Finally, at 1.15 p.m. Mr Goel emerged from the room and headed straight for the lift.

"We are working on a strategy. We have till midnight tonight," Mr Goel told waiting reporters and disappeared into the lift, and was untraceable for most of the day.

There was little news thereafter, with journalists running from one five-star hotel to another where Mr Goel and the Sahara Chief, Mr Subroto Roy, were said to be holding secret parleys.

Finally it was only around 7 p.m. that journalists received an anonymous tip-off that Mr Goel would board the 8.30 Jet Airways flight back to Mumbai, after having reportedly held a series of discussions with Mr Roy.

Field day for gossip

Starved of official news throughout the day, gossipmongers came to the fore to say, "the deal is off." Soon thereafter came the news that the deal had been finalised although the price was now around Rs 1,200 crore instead of the previously negotiated price of Rs 2,217 crore.

Negotiated on January 19, the Jet-Sahara deal seemed almost through until early this week when reports started coming in about Jet Airways having second thoughts on the buyout. This was reportedly because the Government may not be likely to allot all the landing and parking rights of Sahara to Jet, said to be one of the main considerations behind the Jet acquisition move. Other unconfirmed reports suggested that on inspection, Jet had found the quality of Sahara assets below expectations.

While these reports remained unconfirmed, it was clear that Jet did have second thoughts on the deal because of which its senior officials were in a huddle for most part of the week and finally the reported meeting between Mr Goel and Mr Roy.

More Stories on : Airlines | Mergers & Acquisitions | Outlook | Jet Airways (India) Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Outsourcing industry faces consolidation

BSNL floats mega national GSM tender

Jet-Sahara deal may go through

Sonia resigns from Lok Sabha, NAC

`I'll fight from Rae Bareilly again'

SAB Miller plans to bring in some global brands

Satyam bags Nissan NA order

SBI Act changes okayed

Oil bonds worth Rs 5,750 cr issued

Chidambaram talks of action plan to increase liquidity, farm credit

Lalu flags off double stack container train