Springing to the defence of Ratan Tata, two retired group veterans - FC Kohli and B Muthuraman - on Wednesday rubbished as “frivolous and incorrect” Cyrus Mistry’s charges that the patriarch wanted to sell TCS and his ego had inflated Corus acquisition cost, leading to the ousted group chairman partially retracting his remarks.
Mistry said he never stated that Tatas were wanting to sell TCS to IBM or any other company. Within hours of the two coming out with strongly worded comments, Mistry said his statement of Tuesday was based on “information from sources who were close to JRD Tata who informed him that it was Ratan Tata’s intention, and not the group’s intention, to sell TCS”.
While Kohli, the first chief executive of Tata Consultancy Services, said at no point did the Tata Group consider selling the crown jewel to IBM, Muthuraman said the USD 12 billion Corus acquisition was a well thought out decision and the price paid was only 50 million pounds higher than the next bidder.
In a late evening statement issued by his office, Mistry said he did not “say that the ultimate decision was not unanimous, but there were differences and reservations significantly, the fact that Corus was available for purchase at half the price in the recent past is undisputed”.