An internal letter sent by the now ousted chairman of Tata Sons says the conglomerate could face potential writedowns of close to $18 billion. Julie Noce reports.
An internal letter sent by now ousted Tata Sons chairman Cyrus Mistry says the Indian conglomerate could face writedowns of close to $18 billion. Mistry was removed from his post late on Monday by the Tata board for reasons that are still not clear, although sources told Retuers he had lost favor with the family patriarch, Ratan Tata. In Mistry's emailed letter, which was dated Tuesday, he said that a realistic assessment of the fair value of Tata's 'legacy hotspots' could result in a writedown over time. The businesses at risk include Indian Hotels Co, the passenger vehicle operations of Tata Motors Ltd, the loss-making European steel operations of Tata Steel, a telecoms venture and an Indian plant of Tata Power. Regarding his departure as chairman, Mistry said in the letter that after he took the post in 2012 the articles of association of the company were changed and that his freedom to make decisions without interference was limited. A spokeswoman for Mistry declined to comment.