Cairn India board against conditions in Vedanta deal
Cairn India Ltd on Thursday said it will not accept any conditions for the $9.6 billion Cairn-Vedanta deal that will impact the company's value.business Updated: Feb 10, 2011 20:49 IST
Cairn India Ltd on Thursday said it will not accept any conditions for the $9.6 billion Cairn-Vedanta deal that will impact the company's value.
"The Cairn India board of directors has stated that any condition tied to the approval of the transaction which can negatively impact the value of the company, cannot be accepted," Cairn India said after its board met here on Thursday.
The government has attached 11 pre-conditions for clearing the Cairn-Vedanta deal. The major ones relating to royalty-sharing and withdrawal of arbitration cases against ONGC have already been turned down by Cairn India's new promoter, Vedanta Resources.
This is the first time that Cairn India itself has given a statement on the government pre-conditions.
UK energy major Cairn Energy had in August 2010 agreed to sell majority of its 60% per cent shareholding in Cairn India to Vedanta.