Mumbai: The Anil Dhirubhai Ambani group (ADAG) is reported to have initiated talks to acquire the low-cost domestic airline SpiceJet, say reports, without attributing the information to any source.

Other media report have indicated that Vijay Mallya's Kingfisher Airlines and Jet Airways are also interested in acquiring the low cost domestic airline that has been hit hard on account of rising costs due to spiraling aviation turbine fuel prices, and is looking to raise funds, reported the Mint.

Anil Ambani's group owns and manages Reliance Communications Ltd, the second largest player in the Indian telecom market, which is reported to be in talks for a possible merger with South African telecommunications giant MTN. That acquisition, if it were to happen, would create a global top-10 telecommunications entity.

Spice Jet founder Bhupendra Kansagra has denied  that he was evaluating a dilution of his stake in the airline, though is reported to have said that anyone could consider a dilution at the right price.

Other shareholders in Spice Jet are the Tata group, which owns 6 per cent, and the Dubai government's investment agency Istithmar, which holds 13.4 per cent of the budget airline.

In a filing with the Bombay Stock Exchange, in which the airline has said that it has not received any formal communication from anyone. However, the airlines shares rose the most in a six month period.

Spice Jet is part of a clutch of airlines that have never reported a profit, in a market that is hamstrung with record breaking oil prices and a persistent need to expand their fleet.

Spice Jet is the third-largest listed private airline operator by sales, and has been consistently underperforming as a scrip on the bourses till 5 June 2008, having declined 24.97 per cent as against the Sensex's drop of 9.05 per cent.

The company's current equity is Rs 240.65 crore. Spice Jet said that it could shut down some routes soon to par losses. SpiceJet gained Rs4.55, or 15 per cent, to Rs35.95 at the close of trading at the BSE, having risen as much as 23 percent earlier.