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Tata hits back at Cyrus Mistry claims | Tata hits back at Cyrus Mistry claims |
(about 1 hour later) | |
Tata Sons has hit back at its former chairman, Cyrus Mistry, claiming he made "malicious allegations" against the Indian conglomerate. | Tata Sons has hit back at its former chairman, Cyrus Mistry, claiming he made "malicious allegations" against the Indian conglomerate. |
Mr Mistry was unexpectedly sacked on Monday and a highly critical five-page letter he sent to the Tata board was leaked on Wednesday. | Mr Mistry was unexpectedly sacked on Monday and a highly critical five-page letter he sent to the Tata board was leaked on Wednesday. |
He alleged constant interference in his decisions and outlined a litany of fundamental problems at the company. | He alleged constant interference in his decisions and outlined a litany of fundamental problems at the company. |
Tata Sons dismissed Mr Mistry's claims out of hand. | Tata Sons dismissed Mr Mistry's claims out of hand. |
"The correspondence makes unsubstantiated claims and malicious allegations," Tata Sons - the holding company of Tata Group - said in a statement issued on Thursday. "These will be responded to in an appropriate manner." | "The correspondence makes unsubstantiated claims and malicious allegations," Tata Sons - the holding company of Tata Group - said in a statement issued on Thursday. "These will be responded to in an appropriate manner." |
Tata gave no explanation for replacing Mr Mistry with his predecessor, Ratan Tata, on Monday. | Tata gave no explanation for replacing Mr Mistry with his predecessor, Ratan Tata, on Monday. |
In his letter Mr Mistry offered a brutal assessment of many aspects of the Tata Group, warning it could face writedowns worth almost 1.2 trillion rupees ($18bn). | In his letter Mr Mistry offered a brutal assessment of many aspects of the Tata Group, warning it could face writedowns worth almost 1.2 trillion rupees ($18bn). |
Tata Quiz: What did Cyrus Mistry say? | |
Bollywood drama: The Tata troubles | |
Mr Tata made numerous acquisitions in his time at the top, overseeing deals such as the $12bn acquisition of Corus, the former British Steel, in 2007, and the purchase of Jaguar Land Rover a year later. | Mr Tata made numerous acquisitions in his time at the top, overseeing deals such as the $12bn acquisition of Corus, the former British Steel, in 2007, and the purchase of Jaguar Land Rover a year later. |
Tata claimed that Mr Mistry's time as chairman was "marked by repeated departures from the culture and ethos of the group". | Tata claimed that Mr Mistry's time as chairman was "marked by repeated departures from the culture and ethos of the group". |
He had "overwhelmingly" lost the confidence of the board, the statement said. | He had "overwhelmingly" lost the confidence of the board, the statement said. |
Public corporate spats are rare in Indian corporate life, particularly with well-established conglomerates and business elders such as Mr Tata, who ran the Tata group for more than two decades before hand-picking Mr Mistry as his successor. | Public corporate spats are rare in Indian corporate life, particularly with well-established conglomerates and business elders such as Mr Tata, who ran the Tata group for more than two decades before hand-picking Mr Mistry as his successor. |
J. N. Gupta, a former executive at India's markets regulator and now managing director at Stakeholders Empowerment Services, said: "It has taken everyone by surprise. Nobody would have thought such things could happen at Tata." | J. N. Gupta, a former executive at India's markets regulator and now managing director at Stakeholders Empowerment Services, said: "It has taken everyone by surprise. Nobody would have thought such things could happen at Tata." |
Nalin Kohli, a national spokesman of Prime Minister Narendra Modi's Bharatiya Janata Party and a supreme court lawyer, said: "The larger question will remain whether a legal battle will serve the interests of shareholders." | Nalin Kohli, a national spokesman of Prime Minister Narendra Modi's Bharatiya Janata Party and a supreme court lawyer, said: "The larger question will remain whether a legal battle will serve the interests of shareholders." |
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