Cairn: Vedanta plunges 5.59 per cent on LSE amid talks to buy Cairn stake

LONDON/MUMBAI: Shares of NRI billionaire Anil Agarwal-led Vedanta Resources on Friday plunged 5.59 per cent on the London Stock Exchange amid talk that it may acquire a majority stake in the Indian arm of Cairn Energy.

In the late afternoon session, the scrip was being traded at 20.61 pounds, down by 5.50 per cent on the LSE. Vedanta opened on a positive note, but soon swung into the red.

The broader market was also weak and the benchmark FTSE 100 was trading at 5,248.95, down 0.32 per cent in the late afternoon session.

On the other hand, Cairn Energy Plc climbed 1.41 per cent and was being quoted at 4.59 pounds on the LSE.

In India too, Vedanta Group firm Sterlite Industries sank by over 4 per cent to close at Rs 160.70 on the Bombay Stock Exchange. Sterlite was the biggest loser in the Sensex pack today.In contrast, Cairn Energy Plc’s Indian arm, Cairn India, surged by over 5 per cent to hit its highest-ever level of Rs 358 on the BSE. The scrip ended with a gain of 355.45, up 4.36 per cent.Vedanta Resources Plc is in talks to acquire a majority 51 per cent stake in Cairn India for about USD 8-8.5 billion (nearly Rs 40,000 crore) and a deal may be announced on Sunday evening or Monday.Scottish explorer Cairn Energy Plc, which holds a 62.37 per cent stake in India-listed Cairn India, is seeking up to a 20 per cent premium for passing on the controlling stake, two persons in-the-know of the development said.

Agarwal “is meeting Cairn Energy Plc Chief Executive Bill Gammell in London today and the deal is likely to be announced as early as Sunday evening or on Monday,” one of them said.

The deal will be contingent on government approval, as Cairn’s three producing oil and gas assets, including the giant Rajasthan fields, and seven exploration blocks either have explicit provisions for seeking prior approval before the transfer of interest or gives pre-emption, or the right of first refusal, on any shares being sold to partners like ONGC.

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