October 2009
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GoAir denies move to sell stake to Paramount

Indian airlines Paramount Airways and GoAir have played down reports that they are engaged in acquisition talks which would make the combined entity control nearly 8 percent of the domestic aviation sector. On Saturday, reports began making rounds that Chennai-based Paramount Airways, which is promoted by M. Thiagarajan, and Mumbai-based GoAir, the budget carrier promoted by the Wadia Group, were close to agreeing a cash-and-stock deal whereby the Wadia Group would sell GoAir to Paramount for Rs.100-150 crore and also get a stake of 7-8 percent in Paramount in return. The rumors grew stronger as GoAir has nearly a debt of Rs.400 crore in its books and the sale would have helped the airline retire some of its debts. […]

CCI to notify merger norms soon

The Competition Commission of India (CCI) will shortly notify Section 5 and 6 of the Competition Act to regulate mergers and acquisition, according to CCI Chairman Dhanendra Kumar. CCI had already notified Section 3 (Prohibition of Anti-competitive Agreements) and Section 4 (Prevention of Abuse of Dominant Position). In his keynote address at a seminar on “Competition Laws — Development of Trade and Industry,” organised by Hyderabad-based Babul Reddy Foundation, he said competition would accelerate growth and ensure quality products and services were offered at reasonable prices to consumers. “India was transforming into a free economy. Competition is an essence of the market economy,” he said. […]