No basis to media speculation about litigation: Pallonji group
The Shapoorji Pallonji group, the largest shareholder of Tata Sons, on Tuesday ruled out any move to contest the decision by the salt-to-software conglomerate on Monday to remove Cyrus Mistry asCyrus Mistry Exit Updated: Oct 25, 2016 20:47 IST
The Shapoorji Pallonji group, the largest individual and a non-Tata shareholder of Tata Sons, on Tuesday ruled out any move to contest the decision by the salt-to-software conglomerate on Monday to remove Cyrus Mistry as its chairperson in court.
The Pallonji family also negated recent speculative reports about having made any statement.
“Neither the SP Group (Shapoorji Pallonji) nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made,” a spokesperson for the group said.
On Monday, some television channels reported that the Shapoorji Pallonji group would challenge Mistry’s ouster and that the group had termed his removal from Tata Sons as illegal.
Mistry’s ouster came as a surprising. Only last month he had outlined his long-term vision for the group.
Mistry is the son of Pallonji, who controls nearly 18% of the equity in Tata Sons directly and through trusts. That makes him the single largest individual shareholder of the salt-to-software conglomerate.
Shares of Tata Group companies tumbled on Tuesday morning following the surprise decision of Tata Sons, the holding company of Tata Group, to remove Mistry and bring back Ratan Tata as the interim chairperson.
The group gave no reason for removing Mistry but reports suggested the board wasn’t happy with the way he was dealing with non-profit businesses.
Tata Sons has said a selection panel has been formed and mandated with the task of finding a new chairperson in four months.