UK Govt bats for Cairn; opposes preconditions for Vedanta deal

Posted By: Religare
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UK Govt bats for Cairn
The British Government has opposed the Indian government's pre-condition for the clearance of USD 9.6 billion Cairn- Vedanta deal.

British High Commissioner to India Richard Stagg has approached the Prime Minister's Office, stating that Government"s pre-condition to clear Vedanta's acquisition of Cairn on allowing ONGC to recover Rs 14,000 crore royalties payable on behalf of Cairn India, will make the transaction unviable.

Richard Stagg quoted, "...a decision to approve the transaction on the basis of such a pre-condition would fundamentally change the commercial basis upon which the transaction had been agreed as well as unfairly impact minority shareholders in Cairn India."

He further added, "It would therefore render the proposed transaction unviable."

Read more about: cairn india, shares, bse, nse, oil and gas
Story first published: Monday, April 25, 2011, 12:36 [IST]
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