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Tata Sons hits back after letter leak

Thursday, October 27, 2016 - 01:26

Tata Sons accused its former chairman, Cyrus Mistry, of leveling unsubstantiated claims and malicious allegations against the Indian conglomerate as the bitter and highly public row over his sacking escalated on Thursday. Laura Frykberg reports.

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It's hogging headlines all over India. A leaked five page letter from Cyril Mistry. Whose mystery dismissal as chairman of Tata Sons has shocked the business world. In it - he accuses the conglomerate of governance failure and making poor decisions. As well as looming writedowns in businesses it owns like Tata Steel in Britain. (SOUNDBITE) (English) STOCK MARKET EXPERT, SUNIL SHAH, SAYING: "He has raised so many things about the entire group, especially financial conditions of the group. So, that has made investors very nervous." Signs on the market suggest they should be. Shares in all the group's major listed companies fell again on Thursday (SOUNDBITE) (English) STOCK MARKET EXPERT, SUNIL SHAH, SAYING: "This is serious matter, so, I feel sooner somebody from both the camps come out and officially make a statement, in the larger interest of all - not only shareholders, but all the stakeholders, better." A call that appears to have been answered. Tata Sons has issued a statement about the letter. Calling it malicious allegations and unsubstantiated claims. That will be dealt with in 'an appropriate manner'. It could be while before this scandal is off the front pages.

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Tata Sons hits back after letter leak

Thursday, October 27, 2016 - 01:26