Have not taken stand on Vedanta-Cairn merger: United India Insurance

Insurer denies reports stating UII was disappointed over the merger of Cairn India with Vedanta

General insurer United India Insurance Company today said that it has not taken any stand on the merger issue of Vedanta and Cain India Ltd. This comes almost a week after company's official were reporterly quoted by the media that UII is disappointed to the merger of Cairn India with Vedanta.

On July 22nd, media reports have said that an official, who represented UII in the Cairn India's AGM, whose name was not mentioned in the reports commented that he flew down to the meeting to convey company's disappointment and disapproval to the merger of Cairn India with Vedanta.

 

 

The insurer today clarified that the merger issue was not on the agenda items of the Annual General Meeting of Cairn India, which held on August 21, 2015, therefore it would be premature to comment on the matter at this stage.

"A decision would be taken by the company, at an appropriate time," said the insurer officially.

It was reported, United India Insurance, which holds less than one percent stake in Cairn India, showed its concern over the proposed merger with Vedanta. It was also reported that the insurer was of the view that merger scheme is not in favor of Cairn India shareholders and the official was quoted arguing that Cairn India has a higher book value as compared to Vedanta.