the tax dispute between I-T department and Cairn is still a very...

the tax dispute between I-T department and Cairn is still a very active concern although it does appear that the Indian Govern is starting to relent its adamant view that both Vodafone and Cairn owe back taxes.

http://www.business-standard.com/ar...cairn-a-possibility-adhia-115110300030_1.html

http://profit.ndtv.com/news/corpora...-to-pm-modi-on-retrospective-tax-case-1256960

First link is regarding the agreement of I-T to arbitration although I-T appears to be very much taking its time in appointing its arbitrator whereas both Cairn and Vodafone have proceeded to appoint their arbitrator (each arbitration will involve x3 arbitrators, one appointed by each party plus a third independent) however this process has now been dragging on the several months with very little progress on the side of the I-T department.

The second link refers to Modi's reference in a recent speach that the Indian Government 'might' reconsider the retro tax situation.

IMO no company would make an offer for CNE until the Indian Govern retrospective tax claim that Cairn has been hit with is resolved, this is a claim for well north of $US1b and although everyone is aware that, if Cairn are required to pay something, it will be well short of the amount claimed however it would still a major impediment to any TO and if a TO did proceed it would most definitely be at a reduced figure to allow for any possible future payment to the I-T department

CNE is in an enviable position in that it is well cashed up (as opposed to almost all other other mid tier E&P companies)will very soon going into production in its Kraken and Catcher developments and of course the Senegal discovery yet its share price is not responding, this would indicate that the market is very definitely watching this dispute and this IMO is one of the reasons that the CNE share price has not been responding to the discovery as many on here would expect.

HKP