Tata Steel dismisses Cyrus Mistry’s allegation
A day after former Tata Sons chairman Cyrus Mistry launched a scathing attack on Ratan Tata blaming him for a slew of controversial investment decisions such as the Corus acquisitions, Tata Steel on Wednesday issued a rebuttal.
“With reference to media reports on Tata Steel’s Corus acquisition, the company strongly dismisses the unsubstantiated allegations being made against the company, its erstwhile board and management,” it said in a statement.
The acquisition of Corus Group Plc was based on the long term strategy of the company to pursue growth through international expansion and enhance the portfolio of value added products. The performance of Corus Plc, post acquisition, validated the strategy till the black swan event of the global financial crisis structurally impacted the underlying demand conditions in Europe causing financial hardship to the entire industry. The entire acquisition was undertaken by following due Board governance process under the supervision and oversight of the Board of the company, Tata Steel said.
The acquisition proposal was extensively deliberated in the Board and the Board approved the transaction. As a responsible listed company, Tata Steel also made appropriate disclosures at various stages of the transaction to the regulators during years 2006 and 2007, it said.
Meanwhile, in a separate statement, former vice chairman and MD of Tata Steel said, “I am surprised and very sad to see the speculative and biased views being fed in the media regarding the acquisition of Corus nearly a decade back in early 2007. The long term strategy of Tata Steel was well thought out after a lot of deliberation to grow the company through capacity expansion in India and internationally through inorganic growth.”