No violation of takeover code in Jet deal: Etihad

MUMBAI: In a response to Sebi’s notice, Etihad Airways reiterated that it has adhered to all norms specified by the market regulator in the process of acquiring a 24% stake in Jet Airways. The Abu Dhabi-based airline denied that it has violated any of the provisions stated in the takeover code.

The airline argued that it had no reason to go for an open offer, as it had not violated any norm. ET Now reported first on Etihad’s letter. A source close to Sebi confirmed that Etihad has responded to the regulator’s letter. Jet Airways officials could not be reached for their comment.

On February 15, ET had reported that Sebi had issued a show cause notice to Etihad Airways saying that it had violated takeover norms while purchasing the stake in Jet Airways. The notice, while not an indictment, however sought to know why action should not be taken against a company or person for securities law violations.

The regulator’s contention was that Etihad had some measure of control over Jet Airways and it might go against Indian aviation regulations which clearly stipulate that control should be vested with Indian promoters . Sebi’s notice implies that it has reached a preliminary finding that the deal has resulted in a change in control at Jet Airways.