Tata’s shake-up could slow group’s debt reduction

The Star (Kenya) - - News Business -

Tata Sons’ move to oust Cyrus Mistry and his core team of ad­vis­ers could lead to de­lays in the group’s bid to re­duce its debt load across its busi­nesses, an­a­lysts say. The com­pany wants to bring back Ratan Tata as chair­man of the salt-tosoft­ware con­glom­er­ate. The stun­ning board­room coup, an­nounced late on Mon­day, led to a drop in the value of shares in some of Tata’s ma­jor listed en­ti­ties on Tues­day. This was de­spite the com­pany’s at­tempt to calm the wa­ters by bring­ing a well-known and widely re­spected hand like Ratan Tata back to the helm. “Un­der Mistry, Tata Group has taken sig­nif­i­cant steps to­wards delever­ag­ing and bet­ter util­i­sa­tion of cap­i­tal over the last few years,” Cit­i­group said in a note cir­cu­lated to in­ter­nal clients yes­ter­day.

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