21 Nov 07 Reverse Merger of Simplifly (Air) Deccan and Kingfisher on the cards?
If market rumours are to be beleived Vijay Mallya is looking at a reverse merger possibility of Kingfisher Airlines with Air deccan, which has now been renamed as Simplifly Deccan. Vijay Mallya is said to be contemplating over this move since it could get Kingfisher licence to fly new foreign routes. The shares of Simplifly Deccan (Air Deccan) have zoomed by over 20% in the past 2 days on a cumulative basis. However, I suggest that investors don’t rush and buy shares of Air Deccan at the moment. Shares of deccan aviation are over priced and in case the news of reverse merger happens to be false, the hsre prices of Deccan Aviation are likley to tumble. As the old wall street adage goes, buy on rumours, sell on news…it now is too late to act on this rumour.
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