Mumbai: Abu Dhabi’s Etihad Airways has denied violating takeover rules while buying a 24 per cent stake in Naresh Goyal’s Jet Airways.
In a reply to the Securities and Exchange Board of India (Sebi), the foreign airline has said it is not liable to make an open offer for the public holding in Jet as there has been no violation of the takeover code.
Etihad’s main contention is the deal was cleared by both the securities market regulator and the Competition Commission of India before it was served a notice by Sebi in February. The airline had to reply to the notice within 21 days, failing which it could be asked to make an open offer.
The Abu Dhabi-based airline, in its reply, is believed to have said the anti-trust watchdog--which observed that Etihad would get joint control in Jet Airways — had examined the deal purely from a competition law perspective and not through the prism of the Companies Act or the Sebi’s takeover code.
Sebi and Etihad did not respond to this newspaper’s queries on the matter.
Read News in full 11/03/14 Aneesh Phadnis & Samie Modak/Business Standard
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