Tata Global Beverages ousts Cyrus Mistry as chairman
By Aditi Shah
MUMBAI (Reuters) - The board of Tata Global Beverages TAGL.NS, which co-owns and runs Starbucks (SBUX.O: Quote) coffee stores across India, has replaced Cyrus Mistry as its chairman, the first Tata group company to depose him since his removal last month from the helm of parent holding company Tata Sons.
Mistry said in a statement the manner in which he was replaced as chairman of Global Beverages was "inaccurate and illegal," intensifying the high-profile power struggle at the Tata group.
In a boardroom coup last month Mistry was removed as chairman of Tata Sons, the holding company for the $100 billion steel-to-software Tata empire in which Mistry's family hold a minority stake. Patriarch Ratan Tata is now back in charge as a bitter public row ensues.
Despite being removed as chairman of Tata Sons, and now Tata Global Beverages, Mistry still remains chairman of some of the group's major companies like Tata Motors (TAMO.NS: Quote) and Tata Steel (TISC.NS: Quote), where Tata Sons does not have majority ownership.
Tata Sons has called shareholder meetings at these companies to get Mistry ousted from those boards.
The group last week dismissed Mistry as chair of Tata Consultancy Services (TCS.NS: Quote), where Tata Sons has a stake of over 70 percent.
In the case of Tata Global Beverages, seven out of 10 directors on the board voted for Mistry's ousting and appointed Tata veteran Harish Bhat in his place.
Mistry's office questioned the accuracy and legality of his removal in a statement saying "The Tatas continue to demonstrate the lack of respect for due process of law." Continued...