Doubts grow over Jet-Sahara buyout pact

New Delhi, June 20 (UNI) Jet Airways said today it is still awaiting all regulatory approvals and fulfillment of all conditions precedent for the Rs 2,300 crore deal to acquire Air Sahara.

The official statement came only two days before the escrow account expires. In March, the escrow account deadline was extended by three months and Jet Airways had paid a further advance of Rs 500 crore to keep the deal on.

Rebutting speculations that the deal may fall through, senior Jet officials said they still have two more days and both airlines could look for all the available options.

''The deal is on and if there are problems we would look into these,'' said an official.

Sources in the Sahara group indicated that one of the options could be a further extension of the deadline of the escrow account.

There has been much speculation about the deal coming under pressure that intensified after reports that the government had not cleared the name of Jet's chairman Naresh Goyal for the board of Sahara.

Jet has been virtually operating Air Sahara since April.

Still, speculation refused to fade away today and many industry sources said Indian civil aviation's biggest takeover deal may not happen after all.

Sources said Jet Airways is rethinking the deal after its due-diligence revealed some startling facts. Jet, which was allowed to do the due-diligence only after the MoU was signed, found that Air Sahara had been posting mounting losses.

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