A day after Tata Consultancy Services (TCS) came out with the notice calling for an extraordinary general meeting of shareholders to oust Cyrus Mistry, the former Tata Group chairman has dropped a bomb, accusing that Ratan Tata had once tried to sell the future jewel of the Tata empire’s crown to a multinational giant.
A day after Tata Consultancy Services (TCS) came out with the notice calling for an extraordinary general meeting of shareholders to oust Cyrus Mistry, the former Tata Group chairman has dropped a bomb, accusing that Ratan Tata had once tried to sell the future jewel of the Tata empire’s crown to a multinational giant.
Mistry has claimed in his statement to the media that Ratan Tata when he was heading a joint venture with IBM, had proposed to JRD Tata to sell a young TCS to the IT multinational at a time when F C Kohli, founder of TCS, was ill.
The proposal was rejected both by JRD as well as Kohli, Cyrus has claimed.
“Midway during the TCS journey to date, F C Kohli was suffering from a cardiac condition. Ratan Tata was then heading Tata Industries’s joint venture with IBM and approached JRD Tata with a proposal from IBM to buy out TCS. JRD Tata refused to discuss the deal because Kohli was still recovering in the hospital from his setback. On his return, Kohli assured JRD that TCS had a bright future and the group should not sell the company. JRD Tata turned down the offer, demonstrating true vision,” Mistry has claimed.
While Mistry hasn’t mentioned the time of this event, a statement by Kohli, posted on Tata group’s website, talked about him undergoing a cardiac surgery in 1984.
Interestingly, a proposal to merge Tata Burroughs (later to become Tata Unisys and then Tata Infotech)and TCS was also mooted during the same time.
Tata Infotech was merged with TCS in 2005.
“I recall an incident from 1984 when it was proposed to merge Tata Burroughs and TCS. I underwent cardiac surgery the same year in the US. I came to know later about JRD telling his colleagues that while he would favour the merger, he would not take any decision without consulting me. The surgery was performed on July 18. JRD said to wait until September 18 to allow me to recoup fully before any decision on the merger was taken,” Kohli had said.
TCS and IBM have been long-standing partners. The relationship started in the early 1970s and has grown with TCS becoming a Premier Business Partner in 2005.
Elsewhere in his letter, Mistry claimed he had a significant contribution to the growth of the IT giant that continues to support the Tata Group financially.
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