By Jay Shankar/Bloomberg
UB Group and Deccan Aviation Ltd. denied a media reports that Kingfisher Airlines Ltd. may buy a stake in its rival carrier.
“There is no merit in this report,” Vijaya Menon, head of corporate communications at Deccan, said in an interview from Bangalore. “There is no synergy in the merger.” Ravi Nedungadi, president and chief financial officer of the UB Group, also denied the talks in an interview from Arizona.
Kingfisher, controlled by Bangalore-based UB Group, is in negotiations with Deccan to buy a controlling stake or the entire airline, a leading daily reported earlier, citing unidentified investment bankers and brokers. A team of senior officials from Kingfisher is at Deccan headquarters in the southern Indian city of Bangalore to explore the purchase, the newspaper reported.
Deccan Aviation is India’s biggest low-fare carrier. Kingfisher Airlines is a carrier owned by the nation’s biggest brewer.
Shares of Deccan rose as much as 4.1%, and traded 2.5% higher at Rs106.35.