All options open for Cairn India counter-bid

All options are open for Indian state energy firms to make a counter-bid to London-based Vedanta Resources' £6.1bn offer for control of Cairn India, an oil ministry source said.
By The Newsroom
Published 24th Aug 2010, 12:59 BST
Updated 24th Aug 2010, 12:59 BST

The senior oil ministry official, who declined to be identified, was speaking after a report, citing unnamed sources, said Oil and Natural Gas Corp, GAIL and Oil India were considering a joint bid for Cairn India, a unit of the UK's Cairn Energy.

ONGC, Oil India and GAIL have held informal talks on a joint bid for Cairn India even as the ministry is looking at legal options to deny Vedanta approval for its planned deal, a report said yesterday.

Hide Ad
Hide Ad

PTI said the oil ministry was uncomfortable with billionaire Anil Agarwal-owned Vedanta Group buying a majority stake in Cairn India while India's Mint newspaper, citing an unnamed petroleum ministry official, said the government wanted ONGC to be given a chance to buy the holding.

The oil ministry has not given any direction to state firms to make a counter bid for Cairn India, the oil ministry source said.

ONGC, Oil India and GAIL declined to comment.

S P Tulsian, an independent investment analyst and petroleum sector expert, said a state consortium bid for Cairn India was unlikely.

"The (Vedanta) deal is not undervalued, and if someone is going to pay more than 405 rupees a share, then it will be too expensive," he said.

Cairn India shares closed slightly lower yesterday.

Related topics:IndiaLondon