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Jet surges after Etihad's stake buy approved

Jet Airways aircraft stand on tarmac at the domestic airport terminal in Mumbai September 9, 2009. REUTERS/Punit Paranjpe/Files

Reuters Market Eye - Shares in Jet Airways (India) Ltd(NSI:JETAIRWAYS) rose as much as 7.2 percent after the cabinet approved on Thursday a $330 million deal by Abu Dhabi's Etihad Airways to buy a stake in Jet Airways.

Etihad had agreed in April to buy a 24 percent stake in Jet Airways in the first such deal since the Indian government relaxed rules in September 2012 to allow foreign airlines to own up to 49 percent of Indian carriers.

Jet Airways shares are up 4.15 percent at 0953 am.

(Reporting by Abhishek Vishnoi)