It looks set to be an interesting few months for shareholders in Cairn Energy as the finishing line approaches in a long-running $1.6 billion tax dispute. An international arbitration panel is scheduled to gather for its final hearing this summer and a decision is expected before the end of the year.
The issue has been hanging over the oil and gas explorer since 2014, when the Indian government made a retrospective tax claim. India suggested that Cairn should be paying tax in relation to a 2006 restructuring of Cairn India, then its subsidiary and now part of Vedanta Resources. Cairn, founded by Sir Bill Gammell, the fornmer Scottish rugby international, has consistently said that the claim has no merit.
The issue has been an unwelcome