Tata Steel re­moves Mistry as chair­man

Kuwait Times - - BUSINESS -

In­dia’s Tata Steel re­moved Cyrus Mistry as chair­man of its board Fri­day, as un­cer­tainty grows over the fate of its huge loss-mak­ing Bri­tish as­sets.

The move comes af­ter Mistry was un­cer­e­mo­ni­ously sacked last month as chair­man of Tata Sons, the hold­ing com­pany of In­dia’s most fa­mous fam­ily con­glom­er­ate-the $103 bil­lion steel-to-salt Tata Group. Tata Steel Lim­ited (TSL) said in a state­ment to the Bom­bay Stock Ex­change that O P Bhatt, an in­de­pen­dent di­rec­tor on the board, would re­place Mistry un­til the out­come of an ex­traor­di­nary gen­eral meet­ing on De­cem­ber 21. The de­ci­sion to re­move Mistry was taken by “ma­jor­ity con­sent” at a meet­ing of the board of di­rec­tors in Mum­bai on Fri­day.

“The board of di­rec­tors... has de­cided to re­place Mr Cyrus Mistry as the chair­man of the board with im­me­di­ate ef­fect,” TSL said. Tata has been con­sid­er­ing sev­eral bids for its Bri­tish as­sets since putting them up for sale in March, cit­ing a global over­sup­ply of steel, cheap im­ports into Europe, high costs and cur­rency volatil­ity.

The Bri­tish govern­ment has been racing to help find a buyer for Tata’s busi­ness, which had ac­counted for about 16,000 jobs, many of them at the Port Tal­bot steel­works in Wales, the coun­try’s big­gest steel plant. An­a­lysts say pa­tri­arch Ratan Tata, who has taken in­terim charge of the fam­ily busi­ness, was sad­dened by the bat­ter­ing his com­pany’s rep­u­ta­tion was tak­ing in Bri­tain over the un­cer­tainty sur­round­ing its steel as­sets. A change in lead­er­ship could mean that the com­pany was now will­ing to com­mit to its steel busi­ness in Bri­tain, they say. — AFP

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