Essar Energy climbs on news of tax appeal

Essar Energy has climbed this morning after a court ruling in India wiped 26% of the company's share price yesterday.

The ruling appeared to put an end to Essar's use of a tax scheme for its oil refining operations in the state of Gujarat, which had seen the company defer $1.235bn in tax payments.

Essar now says it is "examining all legal options" and expects to file a review petition in the next 30 days.

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The news of an appeal is what has helped the stock regain some of the lost ground on Wednesday. By 10:58, the shares were up 8.8% but the stock is still down some 20% from yesterday's open.

Since listing in May 2010, Essar has lost 64% of its value and may drop out of the FTSE 100 later this year.

BS