Cairn says Indian tax office sells $216 million of Vedanta shares

(Reuters) - Cairn Energy said on Monday it would write down the value of its investment in Vedanta Ltd after Indian tax authorities sold $216 million worth of its shares in the Indian mining company.

Cairn said that it would continue to fight the Indian authorities in an arbitration case over a more than $1 billion retrospective tax bill with final hearings in two weeks.

Cairn said it still holds about 3 percent in Vedanta Ltd after the sale, while warning that it was possible that the Indian tax department might make further sales.

(Reporting by Arathy S Nair in Bengaluru; editing by Patrick Graham)