Infrastructure major Larsen and Toubro on Tuesday, 19 March, moved in to allay concerns over its Rs 10,800-crore bid to take over IT services firm Mindtree, whose management strongly objected to the proposal calling it "value destructive" and "grave threat" to the company's future.
Here are all the developments in the deal so far:
- L&T, which has its own IT business, said it was not making any hostile takeover bid and that the deal was essentially triggered by the Mindtree's largest shareholder – VG Siddhartha – offering to sell his shares.
- This is seen as the first hostile takeover bid in the Indian IT industry.
- L&T Managing Director and CEO SN Subrahmanyan said Siddhartha would have anyways sold the stake and instead of it going to private equity players he wanted a corporate house to step in.
- Whereas Mindtree Executive Chairman Krishnakumar Natarajan told a news conference in Bengaluru, "This (bid) is a MeToo moment in corporate world".
- L&T, which is looking at the Mindtree deal as an investment to deploy its cash of over Rs 15,000 crore, wants at least 26 percent stake in the target company.
- Mindtree management countered it with objections to the bid, calling it an "unprecedented" hostile takeover attempt which will damage value for shareholders of both the companies.
- The board of Mindtree met on Wednesday to discuss share buy-back plan and way forward after L&T bid. The decision was deferred for a later meeting.
- L&T had on Monday agreed to buy 20.3 percent stake at Rs 980 per share in the IT firm for about Rs 2,370 crore from V G Siddhartha, the largest shareholder in Mindtree through Coffee Day Enterprises and affiliated entities.
- At the same acquisition price per share, it placed orders with brokers to buy another 15 percent of the market and announced an open offer for a further 31 percent stake.
(With inputs from PTI)
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