Casting fresh doubt over Vedanta Resources' acquisition of a majority stake in Cairn India in a USD 9.6 billion deal, the Cabinet Committee on Economic Affairs (CCEA) has referred to a group of ministers to be headed by finance minister Pranab Mukhrejee. Hopeful that the GoM will make an early decision, Vedanta said, "The open offer documents have been mailed and we will go with the offer as scheduled." The offer can't thus be withdrawn.
Vedanta's open offer is scheduled to open on April 11 and close on April 30. And, this provides a window to Vedanta to extend the April 15 deadline. Under the Indian Takeover Code the parent transaction cannot take place until the open offer is complete for the minority shareholders, thus giving the two parties more time to seek extension of deadline from shareholders.
However, analyst SP Tulsian of sptulsian.com feels it is not right on part of the London-listed company to go on with the offer. "It will mean mockery of the public-listed company. Moreover, this will be a big negative for minority shareholders," he stated.
In response to this development, Cairn's spokesperson said, "Cairn and Vedanta continue to work with the Government of India to secure the necessary consents and approvals."
src-moneycontrol
Posts
No comments:
Post a Comment