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Cairn India stock surges as reports suggest Cairn Energy against merger with Vedanta

Anil Agarwal-led Vedanta Ltd had offered $2.3 billion to minority shareholders of Cairn India. Earlier in the month, some shareholders had protested against the merger at the Annual General Meeting (AGM) of Cairn India in Mumbai, India

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Anil Agarwal of Vedanta Ltd
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London-based Financial Times reported that Cairn Energy is set to vote against the merger of Cairn India with Vedanta Ltd. The stock on the Indian markets reacted positively to the news and shot up nearly 9% in a tepid trade. 

The share price of Cairn India was trading up by 8.86% on the Bombay Stock Exchange's (BSE) Sensex at 9.48 am, up Rs 14.80. On the National Stock Exchange's (NSE), Nifty, the stock price of Cairn India was up 9.19%, at Rs 182.30. 

Anil Agarwal-led Vedanta Ltd had offered $2.3 billion to minority shareholders of Cairn India. Earlier in the month, some shareholders had protested against the merger at the Annual General Meeting (AGM) of Cairn India in Mumbai, India. 

The salmon-coloured paper reported that Cairn Energy's objections were over "fundamental disagreements over valuations", and its preference for "holding an investment in an energy company rather than a distributed resources group." 

Vedanta Ltd bought 59.88% in Cairn India from Cairn Energy and open markets over the past few years. 

Cairn Energy still has a minority stake left in the company but that is mainly due to the retrospective tax battle it is fighting with the tax authorities in the country. 

India's largest insurer, Life Insurance Corporation (LIC), which is also a minorty stakeholder in the company hasn't been much enthused with the valuations itself. 

(With Reuters)

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