Shares of Jet Airways jumped more than 11 percent on Friday ahead of the crucial board meeting of Tata Sons to discuss a proposal to take over the Naresh Goyal-controlled carrier.
Tata Sons chairman N Chandrasekaran is pitching for the acquisition of cash-strapped Jet Airways, even as Chairman Emeritus Ratan Tata has reservations about the proposed deal, multiple sources told CNBC-TV18.
The government is also keen to see Jet-Tata deal go through as it doesn't want another full service carrier to face bankruptcy.
The rally in Jet Airways shares followed its near 25 percent surge on Thursday and the stock is set to end the week with gains of more than 30 percent at close. According to marketsmojo.com's analysis, Jet Airways shares have gained over 42 percent in last four trading sessions.
The executives from Tata Sons' board are likely to consider the proposal to bid for Jet Airways, which is looking for investors to tide over liquidity crunch that it has been saddled with.
The salt-to-software Tata Group is keen on buying out the promoters, Naresh Goyal and family, and the foreign equity partner, Etihad’s stake in Jet Airways. Currently, Jet Airways promoters hold 51 percent stake in the carrier and Etihad holds 24 percent.
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