If shareholders are okay with Cairn deal, I don't come in, says Khurshid

The Union corporate affairs ministry said it had no problem with global mining major Vedanta Resources’ acquisition of Cairn India if the deal got shareholder approval from both sides.

Responding to a media query on the sidelines of a conference here today, minister Salman Khurshid said his people had no role if the deals get shareholder nod. “If shareholders have a problem, they can approach the High Court, Company Law Board or the ministry,” he said.

The minister was referring to the $9.6 billion deal announced by London-listed Vedanta Resources to acquire 60 per cent stake in oil exploring firm Cairn India.

Asked about the Centre halting bauxite mining by a Vedanta group company in Orissa on environmental issues, the minister said development cannot be pushed blindly. “Development is important, but it must be under an agreed system of law and people must follow it,” Khurshid said.

SC asked to stop Sesa Goa open offer for Cairn
A minority shareholder of Sesa Goa has petitioned the Supreme Court against the company’s open offer to acquire 20 per cent stake in Cairn India on behalf of Vedanta Resources.

Harinarayan Bajaj, who claims to be one of the minority shareholders, filed a petition in the apex court today. Said his counsel, Mahesh Agarwal: “The acquisition of Sesa Goa shares by Vedanta is in a legal dispute since 2008 and pending before the Supreme Court. Pending the adjudication of this dispute, Sesa Goa’s funds and reserves cannot be utilised for acquisition of shares in Cairn India.”

Bajaj has said in his appeal that Sesa Goa had cash reserves of Rs 7,835 crore as on March 31. The open offer for 20 per cent stake in Cairn India will wipe out this reserve and also require Sesa Goa to take a loan of Rs 6,500 crore, he has said. The offer opens on October 11 and closes on October 30.