R500-cr windfall if deal fails | business | Hindustan Times
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R500-cr windfall if deal fails

business Updated: Aug 19, 2010 20:40 IST
Hindustan Times
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Vedanta Group will get an estimated windfall of R500 crore if the target firm’s Scottish promoters fail to get shareholders’ nod for the deal or solicit a rival bid.

As per the terms of the deal, “If Cairn Energy’s shareholders do not approve the transaction of it the sellers breach their non-solicit obligations, the sellers are required to pay a break fee of 1 per cent of Cairn Energy’s market capitalisation to the acquirer.”