Corporate Feb 22, 2013
The Jet-Etihad deal which was deferred by Etihad Airways seeking some revision in the deal has hit a hurdle after differences between the managements on crucial issues intensified, reported CNBC TV18's Kritika Saxena.
The Jet Airways management which is in Abu Dhabi to negotiate the deal are in talks to find middle ground. The disagreement seems to be due to the Right of First Refusal(RoFR) clause in the Share Purchase Agreement. RoFR will give Etihad option to hike stake to 49 percent later. There is also disagreement over management positions and board seats where Etihad seeks key management positions.
Government officials may intervene to allay's Etihad's concerns. Another CNBC-TV18 report earlier stated that the deal is likely to be delayed until an assurance from the government of India regarding its commitment to protect foreign investment is announced. Jet Airways has confirmed to the channel that talks between both the companies is ongoing.
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