Sahara loses cool on revaluation
The airline merger between Jet and Sahara is in danger of falling apart.In Graphics - The anatomy of a 'doomed' dealindia Updated: Jun 21, 2006 11:18 IST
The first airline merger between Jet Airways and Air Sahara is in the danger of falling apart, as the latter toughened its stand on Tuesday against Jet's proposal for revaluation of the Rs 2,300 crore deal -- escrow account for which is set to expire in less than 24 hours.
Even as the civil aviation industry spent the whole day speculating whether or not the deal would come through, Air Sahara President Alok Sharma broke the silence late in the evening, saying that it would not renegotiate the deal struck with the Jet Airways on January 19.
Though there were no specific communication from Jet Airways, feelers were coming from that side about a cut of 10 to 20 per cent of the agreed deal amount, he said.
"In term of renegotiation, we did get some feelers how to go about renegotiation. We have completely turned down this at least on the pricing part of it," Sharma informed a news channel.
However, he said, Air Sahara was willing to grant another extension of 15 days for the share purchase agreement to materialise. But if the deal falls apart, Sahara would operate the carrier on its own from the day after, Sharma said.
Amid the uncertainty over the takeover of Air Sahara by Jet Airways, Union Home Ministry said it would take a decision on various issues, including security aspects, on Wednesday.
"Totality of several factors are being examined including security clearance.The matter is under consideration and a decision... Taken tomorrow," a Home Ministry official said.
Central security agencies had cleared the name of Naresh Goyal two months back and the file had been sent to the Union Home Ministry for further action.
"We are still waiting for all regulatory approvals to be in place" was all Jet had to say.