Top Pioneer ITI Officials Leave Post-Acquisition

Chennai, July 30: | Updated: Jul 31 2002, 05:30am hrs
Some of the top management officials of Pioneer ITI have put in their papers due to the take over of the company by Templeton Asset Management Company. Mr Vivek Reddy, chief executive officer, Mr Prem Khatri, head of marketing and many other unit heads such as the head of accounts have left the firm. It is difficult to put a number on the employees who have quit, sources said.

“There is a significant amount of redundancy especially at the top level. There will be a lot of churn at the senior level,” said sources. Pioneer ITI or Templeton could not be reached for comment.

Earlier, it was expected that the merger process would not cause much pain to the employees as areas of overlap between the two fund houses are minimal.

Pioneer ITI is entirely into fund management of equities while Templeton is known better for its bond funds.

Mr Rajiv Vij, regional head, India and Middle East had reportedly said that the two fund houses will be maintained as separate entities. He has also said the overlap of employees would be less than five per cent.

Templeton has almost completed the buy out of Pioneer ITI. Only a few regulatory requirements such as Sebi approval is needed. The size of the deal has been pegged at about Rs 220 crore.