Reports of Ethihad revising deal: Jet shares down 7%

Shares of Jet Airways on Monday tanked more than seven per cent on bourses amid reports that the Abu Dhabi-based carrier Etihad is likely to revise its deal to buy a stake in the Indian carrier.

According to reports Etihad Airways chairman Sheikh Hamed bin Zayed al-Nahayan said the Abu Dhabi-based carrier needs to revise its deal to buy a stake in the Indian carrier and it was too soon to say when a final agreement between the two carriers would be struck.

Reacting to the news shares of the company opened on a weak note and then lost further ground and touched an early low of Rs 572.20 on the BSE, lower by 7.46

per cent from its last closing price.

Similar movement was witnessed on the National Stock Exchange as well, where the stock after opening at Rs 615, plunged further and touched an intra-day low of Rs 576.10, down 6.77 per cent from its previous closing price.

Etihad is likely to buy 24 per cent equity in Jet Airways valued at about Rs 1,800 crore (Rs 18 billion).

If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.