Posted at 3:40 PM , on July 27, 2015
It is hard to say what will be the final outcome of the proposed Cairn-Vedanta deal but one thing comes out crystal clear. The minority shareholders are having a major voice in merger deals. But, first some background.
The recent amendments to the M&A rules in India specifically require approval for any merger from a majority of the minority shareholders. Let us understand this a little further. Continue reading
Posted at 3:04 PM , on July 22, 2015
As we write this blog, the price of Vedanta (formerly Sesa Sterlite) has corrected almost 60% from the highs achieved last year. In fact, since the merger between Cairn and Vedanta was announced a couple of months back, Vedanta has corrected close to 30% and is already at a yearly low. The merger deal has run into rough weather because of large shareholder institutions like LIC and United India Insurance Company (UIIC) raising doubts about the validity of the 1:1 swap ratio. Continue reading