Vedanta Resources jumps after firm signals deal is in the works

 
Caitlin Morrison
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Workers at Vedanta subsidiary Bharat Aluminium, which is part-owned by India’s government
COMMODITIES producer Vedanta Resources yesterday signalled that it is considering a deal between two of its subsidiaries, Cairn India and Vedanta Limited.

In a response to press speculation, the company said that any potential transaction with Cairn would be considered a reverse takeover.

The group has been planning to combine Cairn, its oil and gas exploration business, with its main Indian operating firm for some time.

Vedanta also said that, in line with its “stated strategy to continue to simplify the group structure”, the firm was still evaluating a deal with the Indian government, in relation to its minority stakes in Hindustan Zinc and Bharat Aluminium Company.

These transactions would also constitute reverse takeovers.

The group also stated that it is “committed to maintaining its premium listing on the London Stock Exchange”.

Shares in Vedanta closed up by 5.23 per cent yesterday.

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