Cairn Plunges After India Issues $1.6 Billion Tax Bill

摘要

Cairn Energy's shares tumbled 18% in London trading on Wednesday after the UK explorer was slapped with a $1.6 billion bill by the Indian tax authorities. Edinburgh - based Cairn announced late Tuesday that it would defend itself against the $1.6 billion tax order plus applicable interest and penalties from the Indian Income Tax Department, relating to the flotation of its Indian subsidiary in 2007. Cairn sold 51.5% of its holding in Cairn India to Vedanta Resources in two transactions, leaving the parent with a 10% stake ( IOD Mar.19'14 ).