Ratan Tata wanted to sell Tata Consultancy Services to IBM, says Cyrus Mistry
In a statement, the ousted chairperson claimed that his predecessor's 'ego' led to the 2007 acquisition of European steel company Corus for over $12 billion.
Ratan Tata had at one point wanted to sell Tata Consultancy Services to American technology company IBM, a statement from the office of ousted Tata Group chairperson Cyrus Mistry said on Tuesday. The possible sale of the information technology company was a “near death experience” for it, the statement said, according to PTI.
Mistry’s office further claimed that his predecessor’s “ego” led to the Group’s acquisition of European steel company Corus for $12.1 billion (approximately Rs 82,636.95 crore) in 2007. The company – which later changed its name to Tata Steel Europe – was available for sale a year earlier at half the price, according to the statement. The decision to acquire it “went against the reservations of some board members and senior executives”, The Indian Express reported.
Mistry also defended his involvement at TCS and Tata Motors, the two companies that make up the bulk of the Group’s total revenues. On November 10, Tata Sons had said that Mistry had made no “material contributions” to success of the two companies.
Mistry’s statement came right after industrialist Nusli Wadia issued a defamation notice against Tata Sons in connection with the conglomerate’s allegations during his removal as independent director from companies under the group’s ambit. Wadia has asked the group to either withdraw its “defamatory special notice” or prove the accusations within two days of receipt of the letter. On November 12, Tata Sons had moved resolution to have both Cyrus Mistry and Nusli Wadia removed as directors of Tata Chemicals, Tata Steel and Tata Motors.
Mistry was ousted as chairperson on October 24. The Tata Group has accused Mistry of being responsible for its dwindling revenue. In a letter to his employees, interim chairperson Ratan Tata had said the decision to sack Mistry was “absolutely necessary” for the group’s success.