Monday, June 17, 2013

NEWS | Jet-Etihad deal: Mideast carrier to enjoy substantial say in decisions

Jet-Etihad deal: Mideast carrier to enjoy substantial say in decisions

The shareholders agreement between Abu Dhabi-based Etihad Airways and Jet AirwaysBSE -8.61 % has been structured in such a way as to create a substantial role for the Middle-Eastern carrier in decision-making at the Mumbai-based airline, an ET study of the shareholders documents shows.

The agreements does not confer any obvious rights or veto powers to Etihad but its concurrence will have to be taken for most decisions, including routine ones, lending credence to the belief that the airline will be some kind of a joint manager of the airline along with Naresh Goyal, who owns 51%.

This is significant as any indication of joint control or management by Etihad could increase regulatory scrutiny and force the two partners to possibly rework parts of the deal.

The Securities and Exchange Board of India(Sebi) has queried the two airlines on ownership and control and asked them to share details of the shareholders agreement.


SOURCE:http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/jet-etihad-deal-mideast-carrier-to-enjoy-substantial-say-in-decisions/articleshow/20622366.cms

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