tag:blogger.com,1999:blog-4985507920781384945.post4455624713352526739..comments2024-03-27T21:22:19.883+05:30Comments on InvestorZclub: Minority Shareholders against Cairn India - Vedanta MergerAmit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4985507920781384945.post-46744765114665145452015-06-14T18:23:32.702+05:302015-06-14T18:23:32.702+05:30The proposal, 1:1 share swap with 7.5% preffered s...The proposal, 1:1 share swap with 7.5% preffered shares of FV10, is only the offer AA group has made and is subject to minority shareholders approval. It's now upto us to accept or reject it. It is absolutely against our interest as being a cairn india shareholders we have the security of cash while shareholders of Vedanta Ltd runs a risk a going down the JP Associates or Jindal Steel way in future as they have loads of debt. Lets unite to defeat this proposal as in no way Cairn India shares are valued at 194. Few days back they paid cash to Twin Star holdings at 220 per share and they are now offering us shares of debt laden vedanta ltd at 194 per share valuation based on friday's closing and that too after 9 months. This is a complete non sense and it's the test of minority shareholders strength india after SEBI's amandment.<br />In what could be a major blow to cairn India shareholders is that in future vedanta ltd will try to merge Hindustan Zinc but this time govt will want cash and no vedanta shares as 29.5% govt shareholding will be auctioned. Vedanta Ltd will end up paying huge amount of cash and loading up debt which will increase the debt burden of the company. It will be disaster for cairn shareholders if the merger goes through.Amit Agarwalhttps://www.blogger.com/profile/17507490232990482319noreply@blogger.com