Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
August 6, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Reuters > Report August 6, 2001 |
Feedback
|
|
|
India denies SIA asked for higher stake in A-IIndia denied on Monday reports that Singapore Airlines wanted a 49-per cent stake for its bidding consortium in long-haul carrier Air-India, higher than the 40 per cent on offer. "These news reports are totally wrong and misleading," a government statement said. "It needs to be clarified that at no stage of Air-India divestment has Singapore Airlines asked for a 49-per cent equity stake, nor has any indication been given by them to the advisor, nor has the issue been discussed by them," it added. Indian newspapers reported on Monday that the government had rejected a call from Singapore Airlines asking that it be allowed to bid for a 49-per cent stake. SIA, in partnership with leading Indian industrial group, the Tatas, is the only bidder left in the race for the loss-making Air-India in which the government is selling a 40-per cent stake. Foreign airlines can bid for a maximum of 26-per cent stake. The privatisation of Air-India is one of India's high-profile sell-offs this year and is viewed as a litmus test of the government's commitment to privatisation of large state-run firms. The government said firm indications given to it by the bidding consortium showed that the Tatas planned to keep a 21-per cent stake in the airline and Singapore Airlines the remaining 19 per cent. In any case, for an international airline in India to be eligible for bilateral rights, it had to be substantially owned and controlled by Indians, the statement said. "Both government of India and the bidders for Air-India are fully aware of this position and have not asked for any deviation," the statement said. SIA said last week it had not submitted its final offer for Air-India, but had also not withdrawn from the race as reported in the media. The only other contender for Air-India, the billionaire Hinduja brothers, were disqualified from the race last month. India has said it would go ahead with the sale even with a single bidder as long as the Tata-SIA offer met the government's reserve price.
|
||||||
