Petrol Stop - ONGC examining legal, contractual fallout of Cairn deal

ONGC examining legal, contractual fallout of Cairn deal

Thursday, 26 August 2010

27 August 2010;dailypioneer.com:New Delhi ONGC on Thursday said it is examining legal and contractual implications of the Cairn-Vedanta deal, but refused to say if it will make a counter offer. "We are examining legal and contractual implications of the Cairn-Vedanta deal on us,"said ONGC Chairman and Managing Director RS Sharma. ONGC is a 30 per cent partner of Cairn India in the prolific Rajasthan oilfields, which is at the centre of a $9.6 billion takeover deal by London-based Vedanta group. "In the board meeting today, I appraised the board members of the status ever since the Cairn-Vedanta deal was made public. "We are tracking the developments closely. There are certain strategic issues for any corporate entity which I cannot share," Sharma said. London-listed mining group Vedanta Resources has entered into a deal to acquire 60 per cent stake in Cairn India, but the deal is contingent on Government approval. When asked whether ONGC will make a counter offer, Sharma said: "I would not like to comment."Sources in the oil ministry, which till early this week was nudging ONGC to cobble up an alliance with Oil India and gas utility GAIL for a rival bid, say that the ministry is only awaiting clarifications from UK's Cairn Energy Plc on it selling majority stake in Cairn India. Separately, Corporate Affairs Minister Salman Khurshid told reporters yesterday that "if shareholders approve, we have nothing to do... If shareholders have a problem, they can go to the High Court, CLB or us.”