MUMBAI, March 3: Indian Hotels, operators of Taj group of hotels, has decided to detach all links with the Kerkar family by disinvesting in Cox and Kings where it is holding 26 per cent stake through its subsidiary, Piem Hotels.The company has offered the shares back to the present promoters in quid pro quo of 1.6 per cent stake held by C&K in Piem. C&K is promoted by Peter Kerkar (son of former Indian Hotels chairman Ajit Kerkar) and an expatriate, Anthony Good with the Peter-Good combine holding nearly 74 per cent stake in C&K.
As the share buy-back talks between the directors of Indian Hotels has failed to make a breakthrough, Indian Hotels, in retaliation has decided to throw C&K out of Taj by cancelling its contract to run travel desks in various properties spread all over the country.
As the termination order against C&K came with out any notice, C&K decided to move the courts against Indian Hotels.
The Bombay civil court has refused to grant an ad interim injunction against the Indian Hotelsorder but it ruled that C&K can file for damages. The case would come for hearing on March 17.
On Monday, the security of Indian Hotels prevented C&K employees from attending to the travel desks situated inside the Taj, Mumbai.
A company spokesman said they reviewed the contract signed by former management with Cox &Kings and it was discovered that the said contract was "detrimental to the interests of the Indian Hotels" shareholders". But the spokesman could not give details on how the contract was "detrimental.
"After a lull, the fresh action against the Kerkars came as Indian Hotels was apprehensive that takeover attempts are imminent on its three major associate companies. In order to augment the pressure on the Kerkars, the Indian Hotels has also decided to put the severance package of the former CMD in the cold storage, sources say.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
