 International Diversification through Acquisition: Fundamentals and Estimations of Vedanta buyout of Cairn IndiaMPRA Paper from University Library of Munich, Germany Abstract: Corporate valuations, financial strength in cash flows and opening up of debt facility favour more overseas acquisitions. Historically, corporate restructuring is a strategic, mechanized and chemical formula for achieving external growth to become a globalized diverse company. The phenomenon of ‘diversification’ is not new, where it was born in the timeline of the Kings. Markets are becoming highly connective, accessible, communicative and are reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case-based research study presents a case discussion, case analysis and opinion based inference on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. We also suggest a new forecasting model to estimate future free cash flows and firm valuation in the upcoming research field of corporate finance. The study exclusively shows reaction of stocks against acquisition announcement and compares with market performance. Keywords: Mergers; acquisitions; equity stake; oil & exploration; Vedanta resources Plc; Cairn energy Plc; Cairn India; deal structure (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74304 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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