Bat Writes To Fis

Confirming this, Ralph Edmondson, BAT spokesman in London, said: "BAT is concerned over the current situation in ITC. We would have to work together with the FIs in finding a way out of the crisis. We have written to the FIs, and we are in fact in touch with all shareholder groups."

This is the first concrete move made by BAT since the Enforcement Directorate rocked its Indian associate, ITC Ltd, with raids and arrests.

A three-member BAT team led by Tony Johnson will be coming to India to attend the board meeting scheduled later this month. The other members of the team are Tim Lord and Richard Pilbeam.

 

Reacting to former chairman K L Chugh's accusations that the British company is responsible for ITC's crisis, Edmondson said: "We have not had the best of relations with Mr Chugh over the past two years. Please ask Mr Chugh what he meant by that, we would not like to comment on that." He said the two BAT nominees on the ITC board, Simon Smith and Malcolm Fry, will attend the board meeting which is supposed to discuss and adopt the half-yearly results.

BAT has been seeking management control over ITC for nearly three

years, since the Indian economy was

liberalised from mid-1991 onwards. However, FIs have opposed any such move, saying that the existing management structure is adequate. The FI nominees together represent the single largest block of shareholding in ITC.