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Vedanta rebuild hit by markets
Hugo Duncan, Evening Standard24.09.08
Mining giant Vedanta Resources today fell victim to the crisis in the financial markets as it abandoned a flagship restructuring plan.
Just two weeks after saying it was to streamline its business into three units, the FTSE 100 firm shelved the plans, blaming the credit crunch.
There was also opposition from Indian shareholders amid concerns about the valuation of its Konkola Copper Mines in Africa.
"In view of the recent changes in global financial markets and investor feedback, Vedanta has decided not to pursue the proposed group restructuring," it said in a shock statement to the stock market.
It came two weeks after chairman Anil Agarwal said the rejig was "a significant milestone".
Today it said it remained "committed to simplifying and streamlining its corporate structure" but its shares fell 84p to 1443p — well below their value earlier this year when they were trading at 2780p.
