Tata Sons only in preliminary talks with Jet Airways about a deal

Indian conglomerate Tata Sons said Friday it is in preliminary talks with struggling Jet Airways but has not made a proposal to acquire a stake, cooling speculation that a deal was imminent. Shares in debt-laden Jet Airways surged on Friday for a fourth straight day after media reported that Tata was close to making a takeover bid for the airline, which flies to destinations including Hong Kong, Dubai, London and New York. “Over the last few days there has been growing speculation in the print and electronic media about Tata’s interest in Jet Airways,” Tata said. “We would like to clarify that any such discussions have been preliminary and no proposal has been made.” Tata already owns two Indian airlines but has less than 10 percent of the country’s aviation market. A deal with Jet would transform Tata from a fringe player into the country’s dominant, full-service international carrier, but would also give it a loss-making company that is struggling to stay afloat and owes money to vendors and employees alike. Jet is 24% owned by Etihad Airways. <br/>