Profit Opportunities from Vedanta and Cairn India Merger

IF 0.1 Q4 BUSINESS

Asian Case Research Journal Pub Date : 2019-07-10 DOI:10.1142/S0218927519500032

Pitabas Mohanty, Supriti Mishra

引用次数: 0

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.

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韦丹塔和凯恩印度合并带来的盈利机会

2015年6月14日，英国韦丹塔资源有限公司宣布合并其在印度的两家子公司，即韦丹塔有限公司和凯恩印度有限公司。根据合并条款，韦丹塔有限公司将为凯恩印度公司发行一股自己的股票。此外，它还将发行面值为10印度卢比的优先股。然而，两家公司的股价很快就开始在上述交易比率建议的范围之外交易。这就产生了不同的交易策略和不同的可能结果。案例写于2015年9月中旬左右，当时两家公司的股价都在下跌，股东尚未收到管理层的任何正式沟通。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Case Research Journal BUSINESS-

CiteScore

0.10

自引率

0.00%

发文量

期刊介绍： The Asian Case Research Journal"s principal objective is to provide case instructors, whether academics, consultants, or company in-house trainers, a selection of high-quality cases on Asian companies and MNCs operating in Asia-Pacific. These cases, not having been previously published, provide a fresh and topical pool of cases for teaching purposes. The cases are either decisional — that is, requiring some business decision from the reader — or illustrative in nature, such as reasons for a firm"s success. The cases come from various business disciplines including strategic management, marketing, organizational behavior/human resources, operations management, and MIS. All cases have been double blind refereed to ensure quality.