Indian airline confirms stake talks with Etihad Airways

Kingfisher's debt is reportedly in the region of $2.5bn Indian airline Kingfisher has confirmed that it has held talks with Abu Dhabi's Etihad Airways and other investors about taking a stake in the struggling carrier. Kingfisher shares rose by 5 percent amid speculation that Etihad was close to buying a 48 percent stake in the carrier for $550m. The company later confirmed that there had been "discussion with various investors, including Etihad Airways, for equity investments in the company." However, there was no comment on the size of the stake or the price involved.
Indian newspaper Mumbai Mirror reported that any potential deal between Kingfisher and Etihad would be announced closer to the Indian airline chairman Vijay Mallya's birthday on December 18.
As Kingfisher looks for an investor, there have been rumours that Etihad Airways is in talks with another Indian airliner, Jet Airways about a potential partnership.
Kingfisher's debt is reportedly in the region of $2.5bn and its market value is $231m.