Oil PSUs won't make counter bid for Cairn India: reports

Shares of Cairn India slipped after news reports suggested that public sector oil companies will not make a counter bid for the Indian arm of UK-based Cairn Energy Plc. Speculation has been rife that state-run oil companies, led by ONGC and Oil India could announce a counter offer for Cairn India. Vedanta Resources Plc last week announced plans to acquire up to 60% stake in Cairn India for up to US$9.6bn.



Separately, reports suggested that Oil India has hired seven banks, including Citigroup and Morgan Stanley, to help complete one overseas acquisition in the current fiscal year. Banks, including Deutsche Bank, BNP Paribas, Nomura Bank International and Merrill Lynch, were appointed about a month ago, Finance Director, TK Ananth Kumar was quoted as saying.

According to reports, the Government has asked ONGC and Oil India, to make at least one acquisition each this year to meet the growing oil demand in the country. Also, the Government plans to set up a sovereign wealth fund to help state-run oil & gas explorers compete with Chinese rivals for overseas energy assets.

Oil India chairman was quoted as saying that the Company is looking for shale gas opportunities in overseas markets. However, there is no official confirmation of the news.