Shares in India-focused miner Vedanta
FTSE-100 miner Vedanta, which has underperformed the UK sector by more than 25 percent since the start of last year, currently has a sprawling structure with a string of subsidiaries, none fully owned and several separately listed, producing power and commodities from oil and gas to iron ore.
As a first step in the overhaul, Vedanta said on Saturday it would merge non-ferrous metals producer Sterlite Industries
At 0804 GMT, shares in Vedanta were trading at 1,550 pence, up 3.3 percent and outperforming a 1.2 percent drop in the UK mining sector <.FTNMX1770>.
Should the deal complete, Vedanta has solved the top two issues pinning back shares: a complex corporate structure causing value leakage with cross holdings raising corporate governance concerns, and the ability to service PLC debt, Liberum analysts said in a note.
(Reporting by Clara Ferreira-Marques; Editing by Hans-Juergen Peters)