Ratan Tata’s ‘ego’ led to costly Corus deal: Cyrus Mistry

"Ratan Tata's decision to acquire steelmaker Corus for more than $12 billion, when a year earlier it was available at half the price, went against the reservations of some board members and senior executives," added the statement.

By: Express Web Desk | New Delhi | Updated: November 22, 2016 7:33 pm
Cyrus Mistry, Ratan tata, Mistry Tata Spat, Cyrus Mistry Ratan tata, Mistry Tata, Tata Sons, Tata Group Ratan Tata (L) with Cyrus Mistry. Tata Sons on Monday removed Cyrus Mistry as its Chairman, nearly four years after he took over the reins of the group.

Ousted Tata Sons chairman Cyrus Mistry on Tuesday leveled allegations at Ratan Tata blaming his ego for the Corus deal at a high price. He also said Tata’s contribution to the success of Tata Consultancy Services (TCS) and Jaguar Land Rover is an ‘illusion’. In a series of statements issued by Cyrus Mistry’s office today, it said, “Ratan Tata had pitched for selling TCS to IBM, a ‘near death experience’ for group’s crown jewel. Ratan Tata’s ‘ego’ led to Corus deal at a high price.” He also alleged that Tata’s decision to acquire Corus for more than $12 billion went against reservations of some senior executives. “Ratan Tata’s decision to acquire steelmaker Corus for more than $12 billion, when a year earlier it was available at half the price, went against the reservations of some board members and senior executives,” added the statement.

Mistry also defended his involvement in growing the revenues and profits at two key group companies, Tata Consultancy Services and Tata Motors, that make up the bulk of Tata’s $100 billion revenues. “It is important to set the record straight since insinuations and leaks are being made explicitly to create an illusion that Mistry was a ‘hands off’ chairman and TCS/JLR were on ‘auto-pilot’ during his leadership,” Mistry’s office said in a five-page letter today.

In a surprise move, Mistry was sacked as the chairman of Tata Sons on October 24 this year, nearly four years after he took over the reins of the over USD 100 billion salt-to-software conglomerate. The decision was taken at a high-level board meeting held in Mumbai. Ratan Tata is currently serving as the interim Chairman for four months during which a search committee has been tasked to find a replacement for Mistry.

In the meantime, Industrialist Nusli Wadia, who is an independent director on some Tata Group companies, served a defamation notice to Tata Sons board asking it to withdraw “false, defamatory and libelous” allegations against him. Responding to the notice, Tata Sons said “the company will respond to the notice appropriately”. Wadia is an independent director on some Tata Group companies which have called EGMs to remove him from their boards for allegedly siding with ousted chairman Cyrus Mistry.

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  1. A
    A
    Nov 22, 2016 at 5:04 pm
    Ratan Tata was a lousy deal maker, the jewel in the crown was Corus, as Mistry has called it. The JLR dividend was the fruit of the previous Ford investment, else why is the midas touch missing for the nano. RT is part of the corrupt elite, see who got paid in advisory fees, always follow the money.
    Reply
    1. K
      Kafkaesque.Brahmins
      Nov 22, 2016 at 5:28 pm
      It's all a brahmin syndicate conspiracy fully backed and aided by bRAWmins.
      Reply
      1. S
        Satendra kumar
        Nov 22, 2016 at 2:38 pm
        SIR RATAN TATA a big issue for the chairmanship of the company if the groups audits are clean honest trusted with states and central government the public genuinely ask what are the issues for such groups.
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        1. M
          MyTake
          Nov 22, 2016 at 5:58 pm
          Fighting is good only the higher truth comes out as a consequence, provided everyone is fighting honestly and truthfully!
          Reply
          1. P
            Pradip
            Nov 22, 2016 at 2:02 pm
            Ratan Tata started this war of words , so he has to end it by keeping quiet. Today TATA sons image is much sullied thnx to him.
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            1. A
              ams
              Nov 22, 2016 at 6:03 pm
              are you a MORON? Where and how does brahmin or any other caste come into picture? Looks like you have totally lost it!!!!
              Reply
              1. P
                Parambharti
                Nov 22, 2016 at 1:43 pm
                Cyrus Mistry is no angel either, he was just a worker, even if it is called chairman, and why is he behaving like he built this Empire, which he hasn't.
                Reply
                1. K
                  Kaliyug
                  Nov 22, 2016 at 2:52 pm
                  Anyone like Tata has a big "Tatta", so he made the Corus deal, it was disaster from day one, it pleased his supporters in the political spectrum of Europe.
                  Reply
                  1. K
                    Kaliyug
                    Nov 22, 2016 at 3:46 pm
                    Money made in India vanishes into European pockets via Corus deal, this kind of wealth transfer from India has been happening under all the administrations, this keeps the West from fueling trouble in India. The West is very united, the East is very divided, this makes any kind of joint effort impossible.
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                    1. M
                      mohasa
                      Nov 22, 2016 at 2:57 pm
                      Cyrus Mistry is single-handedly making himself unemployable in the future. He is vindictive and spills the internal workings of a company because he was sacked. He is out to destroy the image of a company he worked for to get satisfaction. What company would employ him and take on the risk of his vindictive character should he be terminated?
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                      1. C
                        CMA Raju Gupta
                        Nov 23, 2016 at 1:54 am
                        He and many other so called tycoons of India did the same and the price has to be paid by common people of India since 2008. The defaults of payment by these companies has been loaded on common man in the form of high prices and devalued Indian currency. Further NPAs created by these companies are also recovered from common people by the ways of hike in metal prices by these companies and anti dumping duty on imports.
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                        1. D
                          David
                          Nov 22, 2016 at 9:00 pm
                          India please understand the the real issue. Ratan Tata is a traitor. An old British loyalists.
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                          1. D
                            David
                            Nov 22, 2016 at 9:02 pm
                            Why would he pay 6 billion more for Corus steel. A loss making venture and when steel prices hit the bottom.
                            Reply
                            1. R
                              ravi
                              Nov 22, 2016 at 6:54 pm
                              Unfortunately the way Mr Mistry is fighting tooth and nail with his past employer speaks of his own ego problems. Strangely the man could not argue with his own father to give him a job so he is fighting to get hold of control in someone else's business.
                              Reply
                              1. R
                                Rajesh
                                Nov 22, 2016 at 4:50 pm
                                One who ociates with fixers like Nira Radia can never be seen as ethically upright. Ratan Tata proving to be Tata Group's nemesis
                                Reply
                                1. R
                                  rohan
                                  Nov 22, 2016 at 1:34 pm
                                  Ratan has a right to ego. He is a Tata. That doesn't allow any one else to blackmail him like a petty criminal.
                                  Reply
                                  1. S
                                    S.Dinesh
                                    Nov 22, 2016 at 1:33 pm
                                    It was indeed Tata's ego, and a desire to do a 'Mittal',who had bought Arcelor just ahead of Corus deal.
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                                    1. K
                                      ksrk
                                      Nov 22, 2016 at 3:25 pm
                                      corus = tata ki lt;br/gt;lt;br/gt;6 Bn USD cheez ki 12 Bn USD main kharidna
                                      Reply
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