Summary Box: Cairn stake sale to Vedanta cleared

AP News
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Posted: Dec 07, 2011 12:33 PM
Summary Box: Cairn stake sale to Vedanta cleared

ALL CLEAR: India has given final approval for Cairn Energy's $6.5 billion sale of a majority stake in its Indian assets to London-based mining firm Vedanta Resources.

LENGTHY REVIEW: The long-delayed deal has served as a reminder of just what many foreign investors don't like about India. Over 15 months of negotiations resulted in a punishing contractual change over royalty payments.

STICKING POINTS: The companies announced the sale back in August 2010, but wrangling over royalties and government approvals threatened to sink the deal in India's notorious bureaucracy.