Shares in Jet Airways rose more than 6 per cent as traders expect Etihad Airways may be forced to make an open offer to retail shareholders after market regulator SEBI served notice to the Abu Dhabi-based airline.
Market regulator SEBI issued a show-cause notice to Etihad Airways, asking whether it violated takeover rules in acquiring a 24 perc ent stake in Jet Airways.
If Etihad has to make an open offer, it will have to buy the shares at 754.74 rupees each, the price at which it agreed to buy a stake in the Indian carrier in April last year, three traders said. The open offer, if at all it is made, will benefit retail shareholders, one of the traders said.
In April last year, Etihad agreed to buy 27.3 million new shares of Jet at 754.74 rupees per share, the first investment by a foreign airline in an Indian carrier.
At 0401 GMT, shares in Jet Airways were up 4.81 percent at 226.80 rupees.