Cairn CEO buys shares showing confidence after $1.6bn Indian tax bill

Cairn's chief executive increased his stake showing confidence in the group in the same day that its Indian subsidiary was hit by a bill of at lest $1.6bn by the Indian government due to unpaid tax.

Simon Thomson bought 50,000 new shares in the oil and gas exploration company for an individual price of 149.79p, spending a total of £74,895.

After the transaction,Thomson holds 507,567 remaining shares.

Shares in Cairn plunged by 16.6% on Wednesday after its Indian subsidiary, Cairn UK Holdings Limited, received a draft tax assessment order from the Indian Income Tax Department to pay $1.6bn plus any applicable interest and penalties.

Thomson said: "Cairn has consistently confirmed that it has been fully compliant with all relevant legislation and paid all applicable taxes in India and we are confident of our position under the UK-India Investment Treaty."

Top Director Buys

Kerry Group 'A' Shares (KYGA)
Director name: Mr Philip Toomey
Amount purchased: 3,000 @ € 62.71
Value: € 188,130

Cairn Energy (CNE)
Director name: Mr Simon Thomson
Amount purchased: 50,000 @ 149.79p
Value: £74,895

Fidessa Group (FDSA)
Director name: Mr John Hamer
Amount purchased: 2,000 @ 2,127.00p
Value: £42,540

Helios Underwriting (HUW)
Director name: Mr Nigel Hanbury
Amount purchased: 20,000 @ 153.00p
Value: £30,600

Hardy Oil & Gas (HDY)
Director name: Mr Alasdair Locke
Amount purchased: 93,496 @ 30.75p
Value: £28,750

Alliance Trust (ATST)
Director name: Mr Karin Forseke
Amount purchased: 4,895 @ 490.24p
Value: £23,997

Galileo Resources (GLR)
Director name: Mr Colin Bird
Amount purchased: 985,000 @ 2.02p
Value: £19,897

Guscio (GUSC)
Director name: Mr Marcus Yeoman
Amount purchased: 200,000 @ 8.00p
Value: £16,000

Hardy Oil & Gas (HDY)
Director name: Mr Peter J Milne
Amount purchased: 48,780 @ 30.75p
Value: £15,000

Waterman Group (WTM)
Director name: Mr Craig W K Beresford
Amount purchased: 20,852 @ 71.50p
Value: £14,909

Top Director Sells

Novae Group (NVA)
Director name: Mr Matthew K Fosh
Amount sold: 79,007 @ 645.00p
Value: £509,595

Greggs (GRG)
Director name: Mr Richard Hutton
Amount sold: 26,750 @ 970.38p
Value: £259,577

Greggs (GRG)
Director name: Mr Raymond Reynolds
Amount sold: 26,750 @ 970.38p
Value: £259,577

Greggs (GRG)
Director name: Mr Roger Whiteside
Amount sold: 12,251 @ 970.38p
Value: £118,881

4Imprint Group (FOUR)
Director name: Ms Gillian Davies
Amount sold: 4,350 @ 990.00p
Value: £43,065