Tata group to consolidate to keep predators at bay
07 Jul 2006
Mumbai:
The Tata Group will increase promoter holding in all group
companies over time to prevent any hostile takeover, Ratan
Tata, chairman, Tata Group told reporters on the sidelines
of a meeting with minister of state for industries Ashwini
Kumar.
The Tata Group had earlier proposed to hike stake in Tata Steel in the wake of Mittal Steel''s announcement of its India plans.
While Ratan Tata said the "market is big enough for everybody," including Mittal Steel, he said the consolidation drive would be taken forward in other group companies. Tata, who heads the biggest business conglomerate in India, however, did not elaborate on consolidation plans for the group companies.
On Wednesday, Tata group had announced it would raise its equity in its steel venture Tata Steel by seven per cent to 33 per cent to thwart any takeover attempts.
"We will raise the promoters holding in order to act as a deterrent to takeovers," Tata had said at company''s AGM.