ONGC deliberately decided not to bid for Cairn: ONGC chief

September 23rd, 2010 - 8:01 pm ICT by IANS  

New Delhi, Sep 23 (IANS) The state-run ONGC has said it “consciously” did not counter-bid for Cairn India after Vedanta Resources made a multi-billion dollar offer for a majority stake.
“If ONGC did not make an offer, that was done consciously,” ONGC chairman and managing director R.S. Sharma told reporters here Thursday.

London-listed Vedanta had made an offer of $9.6 billion to buy the stake of Cairn Energy in its India branch, Cairn India. ONGC, with a 30 percent stake in Cairn’s Rajasthan block, has a right to first refusal of Cairn India’s assets.

“That has been a conscious decision considering all legal aspects, considering all commercial aspects and the interest of the company,” he reiterated.

As per regulations, Sep 7 was the deadline for making a counter-offer for Cairn India, but ONGC could still exercise pre-emption right before Cairn Energy’s extraordinary general meeting on Oct 7.

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