kusadasi schreef op 25 oktober 2016 11:54:
Tata Steel’s Europe Joint Venture Seen Delayed by Mistry Ouster
Ameya Karve
abhavam
Santanu Chakraborty
SantanuChakra
October 25, 2016 — 10:04 AM CEST
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Company was in talks with Thyssenkrupp to combine operations
Tata Sons replaces Chairman Cyrus Mistry with Ratan Tata
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Tata Steel Ltd.’s efforts to combine its European steel operations with Thyssenkrupp AG may be delayed after parent Tata Sons Ltd. abruptly replaced its Chairman Cyrus Mistry, according to CLSA Asia-Pacific Markets.
“It was widely believed that Cyrus Mistry was the driver of Tata Steel’s strategy to sell-off its European assets,” analysts Mahesh Nandurkar, Abhinav Sinha and Alok Srivastava wrote in a report Tuesday. His ouster may raise questions about the continuation of this strategy and a major decision on talks with Thyssenkrupp may happen only under a new chairman, they wrote.
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Mistry, 48, was replaced by his 78-year-old predecessor Ratan Tata at a board meeting on Monday, calling into question his push to transform Tata Group into a more prudent enterprise by refinancing loans and selling down assets. Tata, a scion of the founding family, will serve as the interim chief and take part in the search for a more permanent successor over the next four months. Tata Steel in March said that it would consider selling its loss-making U.K. operations, formerly known as Corus Group Plc and purchased in 2007.
“Corus sale will be a matter of contention with the new management,” Ramesh Damani, a member of BSE Ltd. and a prominent investor, said by phone from Mumbai. “It is a guiding philosophy of Tatas not to dispose, but turn around businesses.”
Shares of Tata Steel, which have surged 60 percent this year, declined as much as 4.2 percent to 408.35 rupees in Mumbai. It was the biggest loser on the benchmark S&P BSE Sensex.
Tata Mutiny Must Yield a Bounty to Save Investor Returns: Gadfly
Thyssenkrupp is open to integrating Tata’s British unit in a joint venture, and the German company wants Tata to find a way to fund its U.K. pension-scheme obligations as a precondition, people familiar with the matter said in August, asking not to be identified because the negotiations are private. Tata wants to include the U.K. division in the Thyssenkrupp project, which would give it a bigger stake in the overall venture, one of the people said.