Is the Jet-Sahara deal off?

Goyal is calling for a meeting in London shortly (June 20, 2006). Is not happy at all and the lack of security clearance might be used as an excuse to exit the deal.

If the Deal does not go through......Surprise ahead.

regds

MEL

Goyal gets security clearance

CNN-IBN 11.15 pm bulletin (June 20) says Goyal has got security clearance to join the Sahara board.

Home Ministry is expected to clear it.

But the deal with Sahara is still being debated. Jet feels it is better to loose Rs. 250 crore than invest nearly Rs. 2,000 crore and then have a balance sheet deep in red.

Alok Sinha, spokesman of Sahara said Sahara will not negotiate anyomore but can extend the deadline.

Since Goyal has got security clearance, does this mean Jet can fly to USA or is that security clearance different?

 Jet wants renegotiation of price: Sahara
--------------------------------------------------------------------------------
 

http://www.ndtv.com/topstories/showtopstory.asp?slug=Jet+wants+renegotiation+of+price%3A+Sahara&id=19665
NDTV Correspondent

Tuesday, June 20, 2006 (New Delhi):

Just ahead of Wednesday night's deadline of three months within which the merger was to be completed, the Jet-Sahara deal looks like it may be over for all practical purposes.

Jet Airways has demanded a renegotiating in the price of the deal.

Jet also wants a 10-20 per cent cut in the value of the deal. Sahara has denied the possibility of a renegotiation and has offered to extend the deadline by 15 days.

NDTV has learnt that Jet is looking at legal options to block the transfer of Rs 500 crore as advance money to Sahara. As per the agreement, the money will go to Sahara and that's what Jet is trying to prevent.

Jet Airways Chairman Naresh Goyal in his conversation with Subroto Roy on June 10 gave enough hints to say that he is no longer interested in the deal.

Loss making airline

Jet is clear that in a falling market, its own valuation has fallen by 40 per cent then why should it pay more than Rs 2300 crore for a loss making airline.

Jet's stand that it will not take over the airline if security clearances for its Chief do not come through might also add to its problems. Through out Tuesday, there were meetings at the Home Ministry concerning the Jet deal.

NDTV has learnt that the Home Ministry is all set to give a go ahead to Naresh Goyal to come on the board of the new airline. Incidentally, the Home Ministry had cleared Goyal to be on Jet's board in 2004.

Jet over the last few months has realised that Sahara, with its slipping market share, may not be worth its while.

With increasing competition Goyal is worried about his own expansion plan rather than taking the burden of a bleeding airline.

The deal was signed about six months ago and is worth Rs 2,300 crore.
 

Goyal is facing an uphill battle regarding 9Ws expansion, i dont think he wants to take the headaches and losses of S2 on him.

Also look at the plumet 9Ws stock has been taking its almost 50% less than what it started at.

Cheers,

Karan

No need of any Livery Now.

regds

MEL