SpiceJet rallies on stake sale speculation

SpiceJet aircraft prepares for landing at the airport in Mumbai July 15, 2008.

Reuters Market Eye - Shares in SpiceJet(SPJT.BO) gain 2.9 percent after newspaper The Financial Express reports a couple of key stakeholders in SpiceJet have resigned from the board of directors of Kal Airways, an investment vehicle that is the carrier's single largest shareholder.

The report sparks speculation the resignations by Kalanithi Maran and his wife from Kal's board of directors could signal a potential change of ownership of SpiceJet.

Maran is the controlling stakeholder of SpiceJet via a personal 16.27 percent stake and through the 32.32 percent stake held by Kal Aiways Pvt Ltd. Maran also controls diversified conglomerate Sun Group.

S.L. Narayanan, CFO of Sun Group, denies any current plans to sell a majority stake in the carrier although he confirms Maran's resignation from Kal's board.

"There is absolutely nothing on the cards. Let me make it very clear that there is no plan at all to either sell the company or induct a new partner or a new strategic investor or issuing any kind of additional equity to an airline or nothing of that sort," Narayanan tells Reuters.