Cairn should not agree to Govt conditions

It is sad that the interests of the minority shareholders are being screwed so badly in India. This first happened in the Hero Honda deal - where the Munjals got a massive discount on the shares from Honda, in lieu of a hike in royalty payments. So the minority shareholders bore the burden.

Now Cairn is likely to agree to the Govt's conditions, because it will not impact them so much - while there is talk of Vedanta renegotiating the price, everyone knows that Vedanta just cannot do any such thing. Oil prices are about 30% higher today than when the deal was announced - any renegotiation of the deal terms would likely go against Vedanta's interest!

So the likely scenario we are seeing, is that Cairn will agree to any terms to get Rs 405/share from Vedanta, and Vedanta will agree to any terms because that is the only way for the deal to go through - and in the end, minority shareholders will get screwed.
You joined the forum just now, and this is your first message - don't tell me you joined just to say "yea right"!

In any case, thank you for the response!

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