Tata Motors facing Opposition in removing Cyrus Mistry
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Sources have stated that Tata Motors, the $22 billion producer of Jaguar sports cars and Land Rover sport utility vehicles, is shaping up as a key battleground in the fight for control of India’s biggest conglomerate.
It was stated that Tata Group is currently facing opposition to its plan to remove Cyrus Mistry from the automaker’s board after Glass Lewis and Institutional Shareholder Services recommended investors vote against the move. The two US proxy advisory firms wrote in reports this month the reasons for the Tata Motors chairman’s ouster haven’t been clearly explained.
Meanwhile foreign investors holding American depository receipts have the potential to influence the vote at next week’s extraordinary general meeting, as they control about 18.5% of the car maker's stock, data compiled by Bloomberg show. Presently Tata Sons have revealed December 13 it bought an additional 1.7% of the car maker, bolstering its position before the December 22 shareholder meeting.
Earlier Mistry has said he was pushing to transform Tata Group into a more prudent enterprise than the globetrotter that has bought Jaguar Land Rover under previous chairman Ratan Tata. The automotive unit has been a particular point of contention, with Mistry supporters claiming the Nano project to produce the world’s cheapest car was a drain on resources.