New Delhi: The best thing for Air Deccan shareholders and aviation shareholders is Kingfisher that would probably workout the best, if the deal indeed happens. CNBC-TV18 stocks editor Udayan Mukherjee shares his views on aviation stocks.
It’s a rumour a day; sometimes its ADAG sometimes it is some private equity player and now its Kingfisher for Deccan Aviation. I am not sure that this deal has happened yet as it's been reported so we keep our fingers crossed. However if you were to ask what is the best option out of the three I think in that order it would have to be Kingfisher, ADAG and then a private equity player.
Because each has their own merits and demerits but what you want to see in the Aviation space is consolidation not just some moneybag picking up a stake.
Jet Sahara was consolidation because one aviation player bought another out and in that sense the number of people fighting in the pool have also number of sharks in the pool go down which leads to less bloodshed.
If Kingfisher and Deccan were to ally together in whichever equity form it will be good for the business because the number of players are slowly shrinking which makes for eventually more pricing power in the industry. If you are playing for an open offer then you can argue who is going to pay the top dollar for Deccan leading high open offer for you but that is a separate discussion and that difficult to game who is going to play what.
But if you simply ask what is the best thing for Air Deccan shareholders and aviation shareholders? I would imagine that is Kingfisher who would probably workout the best if it indeed were to happen. But this is flying a kite and analyzing which shareholder will come in and therefore what will be the impact.
So it’s too wishy-washy a bit of analysis. Lets stay away till the deal happens and then we will analyze it. For the moment it’s clear that somebody will pickup the Air Deccan stake over the next few days and we wait and watch who is it?
Udayan Mukherjee is stocks editor at CNBC-TV18
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