COMPAT issues notice to CCI, Jet Airways on Etihad deal

Dec 19, 2013, 06.43 PM IST

The COMPAT has also issued a notice to the Competition Commission of India (CCI) and Jet Airways seeking an explanation as to what were the grounds on which this deal was cleared.

Tags Jet Airways, COMPAT, Jet-Etihad deal, CCI, Bhargava

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The COMPAT has also issued a notice to the Competition Commission of India (CCI) and Jet Airways seeking an explanation as to what were the grounds on which this deal was cleared.

Like this story, share it with millions of investors on M3

COMPAT issues notice to CCI, Jet Airways on Etihad deal

The COMPAT has also issued a notice to the Competition Commission of India (CCI) and Jet Airways seeking an explanation as to what were the grounds on which this deal was cleared.

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The Competition Appellate Tribunal (COMPAT) has issued a notice to the Competition Commission of India (CCI) and Jet Airways seeking an explanation as to what were the grounds on which the Jet-Etihad deal was cleared.The notice comes on the back of former Air India executive director Jitendra Bhargava's move for the same.

The original plea was primarily to impose a stay on this Rs 2058 crore deal, however, the COMPAT did not agree to that. So, in terms of the deal per se, this COMPAT ruling will have very little relevance or significance.

The hearing for the same is going to start from January 9 which is where the larger legal issues will be taken up by COMPAT. The COMPAT would also want to know the changes that were introduced by the two parties in the various agreements, be it the shareholder agreement, corporate governance code or the CCEA. All of those issues will be discussed starting the January 9.

Bhargava says, "The Jet-Etihad deal had been accorded approval by the CCI. Now, there were certain apprehensions about the order that was issued, particularly that a detailed exercise had not been conducted. There were certain issues that we wanted them to look into. Therefore it was raised at the appellate tribunal of the CCI and today they have given notice."

He further adds, "I have not used the word loopholes. I only said CCI act provides for certain things, that certain provision of the CCI act had not been gone into as thoroughly as they ought to had been."

Jet Airways stock price

On December 19, 2013, Jet Airways closed at Rs 269.60, down Rs 1, or 0.37 percent. The 52-week high of the share was Rs 688.60 and the 52-week low was Rs 260.35.

The latest book value of the company is Rs -27.75 per share. At current value, the price-to-book value of the company was -9.72.

Kebugaran Hidup