Cairn India shares slip 4.5% on Vedanta merger buzz

Shares of Cairn India today fell by 4.5 per cent amid reports that the metals and mining giant Vedanta is considering merging the company with itself.
After falling 5.56 per cent to Rs 170.60 -- its 52-week low in intra-day trade, shares of Cairn India finally ended at Rs 172.60, down 4.46 per cent on the BSE.
At the NSE, the stock closed the day with a loss of 4.34 per cent at Rs 173.
Shares of Vedanta however rose 3.11 per cent to end at Rs 182.55 on the BSE.
"Cairn India was down by 5.5 per cent and Vedanta was up more than 4 per cent intra-day after market rumours suggested that metal giant Vedanta is in talks of merging Cairn India with itself," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

According to media reports, Vedanta is in final stages to announce merger of Cairn India, a listed oil and gas explorer, with itself.

Meanwhile, Vedanta today said its strategy is to "simplify and consolidate" its corporate structure, amid speculations of Cairn India merging with the company.
Anil Agarwal-led Vedanta recently hiked stake in its subsidiary Cairn India by nearly 5 per cent.
"Company's stated strategy is to simplify and consolidate its corporate structure. Management reviews options to deliver this strategy on an on-going basis," Vedanta, formerly Sesa Sterlite, said in a BSE filing today.
Without giving specific details, Vedanta said it would "abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company".

Merging Cairn India with itself would provide Vedanta access to cash and help reduce the debt burden.
At the end of March, Vedanta had total liabilities worth over Rs 99,000 crore on a consolidated basis.