Jet declines as investors get nervous over Etihad deal

Stocks

oi-Sunil

By Sunil Fernandes

Published: Friday, February 22, 2013, 10:00 [IST]

Shares of Jet Airways declined sharply for the second day in a row as investors got increasingly nervous of a deal with Abu Dhabi based Etihad going through. Reports of new clauses likely proposed by Etihad saw the stock dropping almost 4 per cent at Rs 537 in trade today.

One of the options put forth by Etihad was to buy up to 49 per cent stake in the company. Jet Airways had hit a 52-week high of Rs 647 last month following reports of the Etihad stake.

The stock has now shed 15-20 from those levels and has dropped sharply over worries of the not deal going through.

The airline sector has not been doing too good, plagued by high costs, particularly of aviation turbine fuel. Recently, Jet Airways launched a ticket price war by offering 20 lakh tickets at cheap prices.

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