Tata is expected to assume about Rs 31,000 crore of debt in the Tata Teleservices deal. A Tata Sons spokesperson said: “We do not comment on board discussions.” The move comes amid concerns expressed by senior executives of group companies that they haven’t been consulted on M&A negotiations. “Tata Sons’ exposure to the funding of multiple deals when TCS is the only cash cow for the group has got the top brass worried in the Trusts and the Tata Sons board,” said a top official. “The number of rights issues Tata Sons have participated in recently, delay in sorting out the merger of Tata Teleservices with Airtel and sale of fibre assets are also concerns of the board.”The Tata Sons board has three directors nominated by Tata Trusts with a veto power, while others represent Tata Sons. It has also offered to pay salary arrears of 353 workers of Bhushan Steel and ensure continuation of employment.

Source: Economic Times April 08, 2018 18:33 UTC