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ETtech
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Indian IT industry is witnessing its first-ever hostile takeover bid with conglomerate Larsen & Toubro seeking to take control of the mid-tier IT services firm Mindtree. Here's a quick look at key developments so far -
Coffee day group founder and Mindtree's largest investor VG Siddhartha started looking for a buyer for his 20.4% stake after leaving Mindtree board in March last year, due to liquidity pressure on his diversified business portfolio tech.economictimes.indiatimes.com/news/corporate…
Larsen & Toubro, which had previously passed on a deal with Mindtree, started eyeing Mindtree as a possible investment target by April 2018, in a bid to ramp up its services business. tech.economictimes.indiatimes.com/news/corporate…
L&T is initially believed to have offered Siddhartha a nonbinding offer of Rs 1,150 per share, close to Mindtree’s all-time high of Rs 1,183, although it came with a caveat to get the Mindtree mgmt on board tech.economictimes.indiatimes.com/news/corporate…
Mindtree founders however opposed any deal with a peer such as L&T Infotech. Instead, they suggested selling to a clutch of PE investors with no board seat or rights tech.economictimes.indiatimes.com/news/corporate…
The Mindtree stake initially attracted some private equity investors and companies tech.economictimes.indiatimes.com/news/corporate…

However, the search ultimately fizzled out, since these suitors sought a proactive role, affirmative rights and board seats among other demands
tech.economictimes.indiatimes.com/news/corporate…
L&T Infotech, KKR and Baring Private Equity Asia eventually emerged as the key bidders for the Mindtree stake sale tech.economictimes.indiatimes.com/news/corporate…

KKR was open to a Rs 1,500-2,000 crore investment in Mindtree through a combination of debt and equity tech.economictimes.indiatimes.com/news/corporate…
Around the same time, the Income tax department issued orders, restricting Siddhartha from transferring 4.2% of his Mindtree holdings tech.economictimes.indiatimes.com/news/corporate…
On Feb 7, VG Siddhartha's Coffee Day Enterprises officially confirmed that the company board has given an in-principle approval to sell Mindtree shares. He also resumed talks with investors after getting the shares released tech.economictimes.indiatimes.com/news/corporate…
Meanwhile, Mindtree founders continued searching for a white knight, hoping to stall the L&T takeover. It was persuading investors like Baring PE Asia, Chrys Capital and KKR to buy Siddhartha’s shares so that they continue to hold the reins tech.economictimes.indiatimes.com/news/corporate…
Last week, Mindtree took an unusual step of considering a share buyback to stave off L&T's hostile bid. Mindtree chairman & cofounder Krishnakumar Natarajan also warned against a hostile takeover bid in a letter to the L&T board. tech.economictimes.indiatimes.com/news/corporate…
On Monday, L&T officially launched its takeover bid by purchasing a 20.32% stake in Mindtree for Rs 3,269 Cr from VG Siddhartha. It now plans to increase the stake to 66.32% by spending as much as Rs 7,464 Cr, including a Rs 5,030 cr open offer tech.economictimes.indiatimes.com/news/corporate…
L&T Infotech, which mainly has a presence in manufacturing vertical, is expected to get a strong presence in BFSI through Mindtree and benefit from a diversified customer base tech.economictimes.indiatimes.com/news/corporate…
Mindtree founders are still opposing the takeover bid, saying the two companies have different corporate cultures making a merger destructive to value. tech.economictimes.indiatimes.com/news/corporate…
Mindtree founding promoter Subroto Bagchi, said he and three other promoters were offered “huge bags of money” to give away Mindtree but they turned down the offer and urged employees remain focused on work tech.economictimes.indiatimes.com/news/corporate…
Mindtree founders said that they are certain that they have the support of large institutional shareholders & other stakeholders to stave off a takeover by the engineering giant L&T tech.economictimes.indiatimes.com/news/corporate…
Mindtree is also reaching out to leaders of the IT industry and other stakeholders to create a consensus against L&T's decision to acquire the company & convince them not to go ahead with a hostile takeover as it may be negative for the IT sector tech.economictimes.indiatimes.com/news/corporate…
L&T CEO and CFO however say that Mindtree has a path to grow faster under its umbrella and they are confident that better sense will prevail tech.economictimes.indiatimes.com/news/corporate…
Top L&T execs are also resorting to charm in an attempt to win over the irate Mindtree promoters tech.economictimes.indiatimes.com/news/corporate…
Mindtree's independent directors will now set up a committee to evaluate L&T's open offer based on its merits tech.economictimes.indiatimes.com/news/corporate… @JochelleET @ayanpramanikET
Shareholder advisory firm IiAS has said that Mindtree's independent directors must provide guidance to the company’s shareholders on whether they should take up L&T’s open offer tech.economictimes.indiatimes.com/news/corporate…
A deep dive into how Mindtree became the object of a hostile takeover battle between its management and L&T by @arijitbarman76 @ayanpramanikET & @JochelleET tech.economictimes.indiatimes.com/news/corporate…
Mindtree board members have asked the promoter group to consider L&T's offer to increase its stake in the IT firm and deferred a decision on buying back shares, citing legal and commercial challenges, report @JochelleET & @ragkrishnan_ET buff.ly/2TkPS4z
Given that the Mindtree management is hostile to the L&T deal, it is possible that the IT firm's business might suffer as executives spend time to fend off the offer buff.ly/2ujDA2f @JochelleET @ayanpramanikET
Mindtree said it would reconvene its board meeting on March 26, the day when L&T is set to share details of its open offer with shareholders of the mid-tier IT services company buff.ly/2umY2PK
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