Ever heard of complexity bias? In simple terms, it’s the love for complication. Take the case of Vedanta, the company that is owned by Vedanta Resources (VRL), which was listed on the London Stock Exchange until 2018. Its management seems to be a prime example of someone with a complexity bias. “We don’t like, we don’t own, and we don’t track the company. Commodity is anyway a complicated business. That coupled with Vedanta’s complex structure led us to avoid the stock for almost eight years now,” says the CIO of a prominent mutual fund. Ironically, the management has been hard at company “simplification” for years now.
Anil Agarwal is taking public investors for a ride, with Vedanta’s delisting
For the metals and mining tycoon, the latest attempt at taking Vedanta private is a tried-and-trusted method to maximize promoter value