Indian regulator seeking answers from Eithad on Jet deal

February 17, 2014 1:55 am

Etihad Airways has received a show-cause notice from India’s market regulator, asking whether the Abu Dhabi-based airline violated takeover rules in acquiring a 24% stake in Jet Airways, Reuters has reported, citing a source with direct knowledge of the matter. Etihad has been asked to respond by the Securities and Exchange Board of India (SEBI) within 21 days on why it should not make a tender offer to Jet public shareholders, as part of takeover rules, said the source. If Etihad fails to respond to the notice, it will have to make a tender offer to buy the entire 25% public holding in Jet as per Indian takeover rules, said the report.