Dealmaker “Dave”

So having been the centre of attention yesterday for welcoming a new cabinet member – sorry I mean family member – named Larry the cat to Number 10, today, according to press reports, David Cameron is turning his attention to the wonderful world of deal making.

In August last year Vedanta, the UK based company with a focus in India, Zambia and Australia, announced its intention to pursue its acquisition of Cairn Energy plc’s subsidiary Cairn India.

Initial stories suggested that Vedanta was after a majority stake of between 50% and 60% that would value the deal at over $8.5bn. Should the stalemate around the deal be resolved then this would make it the second largest transaction recorded involving an Indian company.

So where does ‘Dealmaker Dave’ fit in to the process?

As it stands currently there is a dispute about royalty payments that fall due for the oilfields between Cairn India and its state-owned partner in the field, the Oil Natural Gas Corp. Cairn needs New Delhi's approvals in the next few days in order to be able to complete the transaction by April 15, or it will have to seek fresh approval for the sale from its own shareholders.

Thus ‘Dealmaker Dave’ has written to his Indian premier counterpart to stress the significance of the deal in relation to British investment in India.

Given that he is in deal-making mode perhaps he might turn his attention to the issues still facing many small to mid-market deal makers in the UK who despite everything are still struggling to release funds from banks to support lower-end deal making in the UK.