As the corporate battle between Mindtree and L&T intensifies, the IT major said that the hostile takeover by L&T would destroy value for the shareholders, and undo all the progress made by the company so far.
As the corporate battle between Mindtree and L&T intensifies, the IT major said that the hostile takeover by L&T would destroy value for the shareholders, and undo all the progress made by the company so far. “This is corporate India’s metoo moment,” Mindtree promoter Krishnakumar Natarajan said in a press conference. Mindtree also posed 5 stinging questions to the infra giant:
- Do you want to be remembered as the first company to mount a hostile takeover in Indian IT industry?
- Why can’t you build its own independent IT company? “L&T is 18 times the size of Mindtree. Why can’t you build an IT organisation of your own,” questioned Krishnakumar.
- Why do you wish to destroy value as clients migrate in this hostile takeover battle?
- What will you be left with is great minds at Mindtree leave? “This is people’s business, what will you be left with if employees leave,” asked Krishnakumar.
- What message are you giving to honest startups in the country?
Mindtree is also mulling a share buyback program in a bid to block L&T efforts of a hostile takeover.According to a Bloomberg report, Mindtree has cash of Rs 162 crore and investments worth Rs 811 crore, as of December 2018. Earlier, today L&T CEO Subrahmanyan said that the firm is approaching this deal in good faith, with ‘Dil’ and ‘Pyaar’, responding to queries over the nature of the first ever hostile takeover in Indian IT sector.
“There are emotions involved, but business is business. What we are trying to do, is with, if I can use the word ‘pyaar’ and we will continue to look at it as something we are doing from our ‘dil’. And we will continue to look at it with the same manner and purpose,” he said at a press conference this morning. L&T shares closed 1.6% lower at Rs 1,356.75, while Mindtree shares closed 2% lower at Rs 943 owing to the hostile takeover buzz.