Vedanta worries Cairn

Vol 14, PW 6 (09 Sep 10) News in Brief
     

It seems the oil ministry and ONGC aren’t the only ones losing sleep over the Vedanta Resources bid to takeover Cairn India.

PETROWATCH learns Cairn employees are getting nervous too. “Cairn and Vedanta have different work cultures,” says one Cairn employee.

“Vedanta is run by (promoter) Anil Agarwal while Cairn is run by professionals.” He is concerned that if Vedanta is successful in its takeover bid, the salaries and perks offered to Cairn staff could be affected.

“Cairn salaries are up to 50% higher than its peers,” we hear, “and are even better than Reliance.” Some speculate that Agarwal could ruthlessly scrap Cairn’s Employee Stock Options Scheme.

“It’s too early to comment,” says a Cairn spokesperson, when asked about these rumours. “This decision (to offer stock options) is taken by the management every year.

Nothing is fixed.” Vedanta Resources is offering $8.48bn to buy up to 51% of Cairn Energy’s 62.37% stake in BSE-listed Cairn India.

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