Sponsored by
Cairn India sale hits referral snag
THE $9.6 billion (£5.9bn) sale of a majority stake in Cairn India to Vedanta Resources hit fresh delays yesterday after the Indian government referred the deal to a panel of ministers.
The cabinet had been expected to make a final decision, but failed to reach any conclusion on royalty payments.
The delay is expected to throw up complications for Vedanta's share offer to shareholders, launched yesterday. But the mining company confirmed it would go ahead with the open offer on 11 April, reflecting optimism for the deal. Jaipal Reddy, India's oil minister, said: "There are some complex issues. The cabinet committee felt such a decision should not be taken in a hurry."
Edinburgh-based Cairn Energy agreed in August to sell a majority stake in its Indian oil venture to Vedanta, but the deal has been plagued by a dispute over royalty payments by Cairn India's partner, state-run Oil & Natural Gas Corp. ONGC, which has a 30-per cent holding in the Cairn-operated Rajasthan fields in western India, pays 100 per cent of the royalties.
Email to a friend
Print this page- Alistair Darling leads ‘No to independence’ fight over tea and biscuits
- Scottish independence: SNP flip-flops over Nato
- Today’s youth not fit to be employed, says car firm Arnold Clark
- Scottish Independence: SNP ‘won’t be Yes campaign’s only voice’
- The Rumour Mill: Wednesday’s football news and gossip
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Edinburgh
Thursday 24 May 2012
Today
Sunny spells
Temperature: 10 C to 23 C
Wind Speed: 12 mph
Wind direction: North
Tomorrow
Sunny spells
Temperature: 9 C to 21 C
Wind Speed: 14 mph
Wind direction: North east
