Profit Opportunities from Vedanta and Cairn India Merger

Pitabas Mohanty and Supriti Mishra
Additional contact information
Pitabas Mohanty: XLRI Jamshedpur, India
Supriti Mishra: IMI Bhubaneswar, India

Asian Case Research Journal (ACRJ), 2019, vol. 23, issue 01, 65-89

Abstract: On June 14, 2015, Vedanta Resources PLC of the UK announced the merger of two of its Indian subsidiaries, namely, Vedanta Limited and Cairn India Limited. Per the terms of the merger, Vedanta Limited would issue one share of itself for every share of Cairn India. In addition, it would also issue a preference share of INR 10 in face value. The stock prices of the two companies, however, soon started trading outside the range suggested by the above exchange ratio. This gave rise to different possible trading strategies for the investors with different possible outcomes. The case is written around mid-September 2015, when the share prices of both companies declined and the shareholders were yet to receive any formal communication from the management.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0218927519500032
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:acrjxx:v:23:y:2019:i:01:n:s0218927519500032

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0218927519500032

Access Statistics for this article

Asian Case Research Journal (ACRJ) is currently edited by Lau Geok Theng

More articles in Asian Case Research Journal (ACRJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().