US billionaire buys into low-cost Indian airline
WL Ross & Co, the private equity firm led by US billionaire Wilbur Ross, has agreed to invest 3.4bn rupees (€51m) in SpiceJet, an Indian low-cost carrier, according to a report in The Wall Street Journal.
The investment will involve "equity-like securities", Ross said, adding any equity stake likely would not exceed the 15% limit above which an offer for an additional 20% of the company would be required under Indian rules.
Ross also predicted a moderation in oil prices. "We believe to some degree that oil is in a bubble," he said, as cited in the WSJ report. "Perhaps a year or two down the road it will settle at $100 barrel, down from $145. Our strategy is to put enough capital into [SpiceJet] to get through that period. We believe there will be fewer competitors in the Indian scene by then," he added.
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