Kingfisher denies report of stake sale to Etihad

India's debt-laden Kingfisher Airlines has denied a newspaper report that it had reached an agreement on selling a 48 percent stake to Etihad Airways.

Kingfisher is in discussion with various investors, including Etihad, for equity investments in the company, but matters are merely at negotiation stages, it said in a statement to the stock exchange.

India changed its Foreign Direct Investment (FDI) policy in September to allow foreign carriers to buy stakes of up to 49 percent in domestic airlines, a move seen as a potential boon for its struggling domestic aviation sector.

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