Tata Group Raises Stake in Tata Motors as Power Struggle Peaks

Tata Sons Ltd. has raised its stake in Tata Motors Ltd., the owner of Jaguar Land Rover, to about 34.7% from 33% ahead of a showdown over the carmaker’s leadership, sources tell Bloomberg News.

The move aims to strengthen the holding company’s control as a three-month-old power struggle over the future of the Tata Group conglomerate approaches resolution.

The battle centers on Cyrus Mistry, who joined the board of Tata Sons in 2006 and was named chairman of the holding company to succeed Ratan Tata in December 2012. Mistry introduced several reforms, claiming he was fighting for the “soul” of the group.

But other board members disagreed, asserting his actions could destroy the company. Mistry was removed as Tata Sons chairman in October when Ratan Tata returned as interim chair. Both sides blame the other for missteps and bad business decisions.

Special shareholder meetings this month are systematically stripping Mistry from board directorships he has refused to relinquish at six group companies. On Monday he was ousted as a director of Tata Industries. Today he was removed as a director of Tata Consultancy Services. On Dec. 22 he is expected to be voted off the board of Tata Motors.