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Uncertainty over Jet-Sahara deal

Deal's execution was stalled for want of clearance of Air Sahara's application of Share-Purchase Agreement.
None | By Press Trust of India, Mumbai
UPDATED ON MAR 21, 2006 08:31 PM IST

Uncertainty loomed large over the fate of the Rs 2,300 crore deal by Jet Airways to acquire Air Sahara in the absence of clearance from the Directorate General of Civil Aviation for effecting the buyout.

The two sides may consider extending the transaction date beyond March 24.

"Wait till March 24. Then only we can give you some news," Jet Executive Director Saroj Datta said from Mumbai while exuding confidence that officials of the two airline will "find a solution" before the expiry of the Escrow account (opened by Jet) on March 24.

Sources in the know of the deal said that the execution of the deal had been stalled for want of the clearance of Air Sahara's application for Share-Purchase Agreement signed by the two sides and the change of the management.

Jet has already got the requisite clearance from the Company Affairs Ministry for buying out the other Airline.

When contacted, Air Sahara President Rono Dutta, who is heading the integration team, declined to comment whether Jet had sought extension of transaction time beyond March 24 and if he was confident about the execution of the deal.

Sahara officials discounted a rumour that Sahara Chief Subrata Roy and Jet Chief Naresh Goyal would meet in Mumbai on Tuesday to iron out differences and echoed the Jet officials' view that there was no glitch in execution of the deal.

Speculation about the meeting had kept journalists here on tenterhooks.

Sources said the issue of extension of the last date for Escrow Account would be considered on March 24 as there could be some other issues relating to infrastructure.

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