Amidst the rather ugly corporate battle between the Tata Group and ousted chairman Cyrus Mistry, there are indications that the two camps are considering the possibility of a truce. According to a CNBC TV-18 report, people close to both the sides (Tata Group and Cyrus Mistry camp) have exchanged feelers over the last few days. The report clarified that the talks are at a very informal and exploratory stage and the next few days would be very crucial in deciding if a peaceful resolution can be found to the raging war. The channel reported that people close to both camps are hoping to put a lid to the public spat.
“In the Tata Power Board meeting there was no resolution to remove Cyrus Mistry as a Chairman and that is seen by some insiders as a tactical move to keep a door open for negotiations and talks going forward,” the channel said. While there is little indication on what reconciliation talks would involve, there is no doubt that the next few days ahead of the EGMs would be important in deciding the future course of action.
— CNBC-TV18 News (@CNBCTV18News) November 30, 2016
Between December 13 and December 26, TCS, IHCL, Tata Steel, Tata Motors, Tata Chemicals and Tata Power will hold their respective EGMs to consider Mistry’s removal as director from their boards. Of these, the boards of Tata Steel, Tata Motors and Tata Chemicals also have Nusli Wadia as an independent director and his removal is also on the agenda.
The unseemly corporate fight between Tatas and Mistry began on October 24 when Mistry was unceremoniously removed as the chairman of Tata Sons on charges of under-performance and not having kept in mind the ethos of the Tata Group. Since then both sides have made allegations and counter-allegations. Mistry for his part has defended his strategies and blamed the legacy issues for the large debt overhang on the group. He has also found support from the independent directors of Tata Chemicals and Tata Motors, calling his ouster an “illegality”. His fate on the boards of the Tata Group companies, however, remains in the hands of institutional shareholders, who have large stakes in several of them.