Grounded Indian airline Kingfisher has confirmed it is in talks with Abu Dhabi-based Etihad Airways, which is interested in taking a stake in the loss-making carrier.
The airline refused to confirm the size of the stake but local media suggested Kingfisher was planning to sell a 48% share.
Kingfisher, which has £870 million in debts is looking to raise funds after lenders refused further loans. Authorities have since grounded its flights.
The company said today: "We would like to clarify that the company is in discussion with various investors, including Etihad Airways, for equity investments in the company."
