Tatas may go for early settlement of DoCoMo row, revisit Euro biz sale

MUMBAI/NEW DELHI: With Ratan Tata back at the helm, the Tata group may review the sale of European steel business and may also seek an early settlement of a legal dispute with former Japanese telecom partner NTT DoCoMo, sources said.

“Please refer to the statement made by Ratan Tata on October 25. If the sale is required we will do it. It will depend on the review,” a Tata Sons spokesperson told HT when asked about the European steel business, one of the several decisions taken by the ousted Tata Sons chairman Cyrus Mistry. The spokesperson did not comment on an “amicable resolution” of the dispute with NTT DoCoMo.

Changes are also expected at Indian Hotels, which runs the Taj chain, with interim chairman Ratan Tata expected to revisit decisions that didn’t go down well with nominees of Tata Trusts that hold the largest stake in Tata Sons of which he is the chairman. For instance, the $125-million sale of Taj Boston in July had upset the old guard who saw the property as an asset.

There was no plan to remove Indian Hotels CEO Rakesh Sarna, a Tata Sons spokesperson said. Sarna took over from Raymond Bickson, a Ratan Tata loyalist, who resigned from Indian Hotels as some to its overseas properties were being sold off.

Queries to Mistry did not get a response. However, in an email to the Tata Sons board he defended his decision.

“Many foreign properties of Indian Hotels and holdings in Orient Hotels have been sold at a loss. The onerous terms of the lease for the Pierre in New York are such that it would make it a challenge to exit,” Mistry said in the email, a copy of which is with HT.

Sources at Bombay House, Tata group’s headquarters in Mumbai, say the thrust, however, will be on digital businesses that Mistry had backed and Ratan Tata wants to continue.

Though Tata Sons did not comment, Ratan Tata told the heads of group companies on Tuesday (October 25), “We will evaluate and continue to undertake those (decisions) that are required to. If there is any change, they will be discussed with you.”

The old guard’s discomfort with some decisions taken during Mistry’s term came to the fore when VR Mehta, trustee of Sir Dorabji Trust, told a television channel that the legal battle with DoCoMo “doesn’t fit with the philosophy of the Tatas”.