Concerned over the Tata-Mistry feud impacting stock valuations, foreign investors are approaching Sebi as well as the independent directors and management of Tata Group companies to ensure that interests of minority shareholders in the listed entities are protected.
More than two dozen Tata group companies, including software bellwether TCS, are listed on the bourses, and most of them have substantial holdings by foreign investors. Their market valuations have taken a hit after the sacking of Tata Sons Chairman Cyrus Mistry on October 24 and ensuing spat between him and the group being played out in the public.
Sources said that Foreign Portfolio Investors (FPIs) and other overseas entities are approaching markets regulator Sebi in the wake of the ongoing board room battle at Tata group. The aim is to ensure that interests of minority shareholders are well protected and foreign investors hope that the issues within the Tata group which commands market valuation of about USD 120 billion are sorted out at the earliest and in an amicable manner, sources added. According to them, foreign investors are also reaching out to the independent directors and the management of respective listed Tata group companies.
Mistry chairs Tata Tele board meet
Ousted Tata Sons chairman Cyrus Mistry continued to chair group companies and on Monday he chaired a meeting of the distressed telecom arm of the group, Tata Teleservices, at the Bombay House, the group headquarters here this afternoon.The privately held Tata Teleservices board is led by Mistry as the chairman and Srinath Narasimhan as the managing director.
The executive directors include Ishaat Hussain who is also on the board of Tata Sons, and two DoCoMo representatives -- Hidetada Hayashi and Katsuhiko Yamagata. That apart the company has three independent directors in Bharati Rao, Vibha Paul Rishi and Narendra Jhadav who is a Rajya Sabha member.
Jadhav and Rishi confirmed the meeting to the media but refused to share the details of what was discussed at the meeting of the unlisted company.
Despite being removed as Tata Sons chairman, Mistry continues to hold chairmanship of several Tata group companies including some listed firms. Among these, he has already chaired board meetings of Tata Global Beverages and Indian Hotels after his removal as Tata Sons chairman on October 24.
Mistry’s dealing with Tata Teleservices Japanese partner NTT Docomo, wherein he refused to buyout the 26 per cent stake of the Japanese firm citing RBI ban and let the matter reach an international arbitration tribunal in London with an adverse verdict, had found repeated mention in the commentary on what would have led to the surprise ouster of Mistry.
Some Tata Group sources said Mistry did not keep Tata Sons in the loop while taking decisions regarding the bleeding telecom venture and that he conducted himself in a manner which was not characteristic of the ‘Tata culture and ethos’.
Mistry has denied all such speculations.
In a letter to Tata Sons board members a day after his removal, he had said he was attempting to get a “potential player” in the consolidation of the industry and the attempt was to improve the bottomline. PTI
3 more held for Attack onjournalists
Three more persons were arrested on Monday in connection with assault on photojournalists before the Tata Group’s headquarters ‘Bombay House’ here, a senior police official said.
“We called the photojournalists and brought them face to face with security persons who were on duty that day. Following the identification, we arrested Shankar Ayyar, Ashok Bamne and Manvir Prajapati,” said an official attached to MRA police station.
Two more persons named in the FIR will be arrested after examination of the video footage of the incident, he said.Police had earlier arrested security personnels Ganesh Shinde and Mayuresh Gurav.