Jet jumps on Etihad deal hope; Kingfisher shares fall

MUMBAI Mon Dec 17, 2012 2:22pm IST

1 of 2. Ground staff guide a Jet Airways aircraft towards a gate on the tarmac at Bengaluru International Airport in Bangalore March 5, 2012.

Credit: Reuters/Vivek Prakash/Files

Stocks

   

MUMBAI (Reuters) - Shares of Jet Airways (JET.NS) jumped as much as 4.7 percent on Monday to their highest in nearly two years on hopes Abu Dhabi's Etihad Airways will buy a stake in the carrier.

Mint Newspaper reported on Monday that Etihad may decide as early as this week whether it will invest in Jet Airways or in grounded rival Kingfisher Airlines (KING.NS), citing two people familiar with the matter.

Mint also quoted one of the people as saying Jet Airways had the edge in terms of attracting Etihad's investment.

Jet and Kingfisher declined to comment. Etihad officials were not immediately available to comment.

Jet is already in talks with Etihad to sell a minority stake in the airline, a government official had told Reuters last month, while Kingfisher has said it was also talking with the Abu Dhabi-based carrier, among others.

Any Etihad deal would be the first since India in September allowed foreign airlines to invest up to 49 percent in a domestic carrier.

Jet Airways shares had gained 4 percent as of 11.30 a.m. to the highest level since January 2011 after surging 18 percent over the prior four sessions.

By contrast, Kingfisher shares fell 2 percent, snapping nine previous consecutive sessions of gains.

(Reporting by Anurag Kotoky; Additional reporting by Abhishek Vishnoi; Editing by Ken Wills)

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage