Will Continue To Oppose L&T’s Takeover Attempt, Mindtree Promoters Say
Get all your live updates on the L&T-Mindtree hostile takeover, here.
KEY HIGHLIGHTS
Don't Mind Someone Else Buying Stake, Say Mindtree Promoters
Mindtree’s promoters would not have any problems with shareholder VG Sidhhartha selling to any other entity which didn't have strategic intent, they said today.
“If anyone else would have purchased the stake, we might not have the same reaction.”
In the meantime, Mindtree will work on convincing L&T to stop the takeover attempt, they said.
- Independent directors will set up committee to evaluate L&T's proposal on its merits
- Independent directors have to make a recommendation to shareholders in light of the open offer
- Buyback matter will come up before the board tomorrow
- Promoters do not want to exit
- Shareholder Nalanda is supporting us
Mindtree Promoters Ask L&T
Mindtree’s promoters posed five questions to L&T, while saying they will continue to oppose the takeover attempt.
- L&T has mounted India IT's first ever "hostile takeover". Is this the example that L&T wants to set?
- Why can't you build a technology business, without decimating another organisation?
- Our customers choose us for our unique culture, they may take business elsewhere. Then, you would have demolished shareholder value for both companies. Is that the right thing to do?
- Our people have signed up for a mission, not just a salary. Take their mission away, and they will go. What would you be left with?
- If companies like you behave with extreme hostility to first generation entrepreneurs, what message are you giving to startups in the country?
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No Strategic Advantage In L&T’s Investment, Says Mindtree Chairman
Mindtree will continue to oppose L&T’s takeover attempt, said Mindtree’s Chairman Krishnakumar Natarajan in a press conference today.
“We don't see any strategic advantage in this transaction,” he said adding that the “unexplainable” transaction will be harmful for the tech firm and its ability to deliver shareholder value.
It could undo all the progress we have made.Krishnakumar Natarajan, Chairman, Mindtree
Expect Approvals To Come Through In 30-45 Days, Says Raman
Competition Commission is the only approval L&T requires in India, Raman said, adding that it is expected to come through in 30-45 days.
- There are some overseas approvals we need because these companies operate globally.
- Two relatively small companies are coming together, so it's not likely to disrupt the competitive landscape.
