Cairn Energy in open talks with govt for stake sale

Cairn Energy Plc, the UK-based oil major which entered into a $9.6 billion deal with Vedanta Resources yesterday to sell a majority stake in its Indian arm, today said it is having an "open discussion" with the government with a view to seek the necessary consent.

"We had friendly and open discussion with the secretary about the proposed transaction," Cairn Energy Chief Executive Bill Gammell said after a half-an-hour meeting with Oil Secretary S Sundareshan, the second in the day.

Gammell said Cairn Energy will seek the government's approval wherever necessary and will continue working with its partner ONGC, the government of India and the Rajasthan government.

"We are not leaving the country. We continue to have a stake in Cairn India," he said referring to the Cairn-Vedanta deal.

Billionaire Anil Agarwal-run Vedanta Resources and Cairn Energy announced a deal yesterday under which Vedanta will buy up to a 60 per cent stake in Cairn India. Vedanta will directly acquire 40-51 per cent from Cairn Energy, while the rest will be procured through a public offer.