Cairn and Vedanta are mulling a possible extention of the 15 April deal closing deadline, reports CNBC-TV18's Nayantara Rai quoting sources.
The reason for that is both the companies have factored in getting all the government and market regulator SEBI's approval for the 20% open offer by 15 February.
Two companies are hoping to make a breakthrough when Vedanta's chief Anil Agarwal and Cairn Energy's chief Bill Gammell meet with the Oil Secretary on 6 February. However, getting a government approval looks difficult. SEBI had also made it very clear that it will require a minimum 30 post government's approval.
Therefore, two companies are looking at extending the deadline for closing the deal. Sources add that initial backend for that has already begun. Something else that could derail the deal and extend it further would be both the companies may have to go back to their shareholders to get a fresh nod for the deal. This is because the time out clause would have been missed put by then. Also, the two companies' boards will have to give its approval.
