Mindtree gains, L&T Infotech drops as race for stake buy hots up
As per an ET report, L&T is likely to sign a deal with Café Coffee Day founder VG Siddhartha to buy his 21 per cent stake in Mindtree
By ETMarkets.com | Updated:
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NEW DELHI: Shares of Larsen & Toubro Infotech slipped over 2 per cent, whereas those of Mindtree climbed over 2 per cent in Monday's session amid reports that Larsen & Toubro (L&T) is eyeing stake in Mindtree.
ET reported that L&T could sign a deal with Café Coffee Day founder VG Siddhartha to buy his 21 per cent stake in Mindtree and launch an open offer for an additional 31 per cent stake in the IT company as early as Monday evening.
The report further added that L&T is likely to announce it has acquired his 20.4 per cent stake and launch its open offer. The L&T offer price for another 31 per cent stake may be around Rs 980 apiece, a 4 per cent premium to Friday’s closing price of Rs 946. Citi and Axis Capital are said to be working on the open offer. KPMG Corporate Finance is the lead adviser to L&T.
Mindtree chairman and cofounder Krishnakumar Natarajan meanwhile warned against a hostile takeover bid in a letter to the L&T board on Saturday. The engineering conglomerate is keen to act before Mindtree’s board meeting on Wednesday to consider a buyback proposal that’s seen as an attempt to thwart the L&T bid.
Shares of L&T Infotech closed 3.33 per cent down at Rs 1,573.30, while Mindtree shares closed 1.74 per cent higher at Rs 962.50 on BSE.
ET reported that L&T could sign a deal with Café Coffee Day founder VG Siddhartha to buy his 21 per cent stake in Mindtree and launch an open offer for an additional 31 per cent stake in the IT company as early as Monday evening.
The report further added that L&T is likely to announce it has acquired his 20.4 per cent stake and launch its open offer. The L&T offer price for another 31 per cent stake may be around Rs 980 apiece, a 4 per cent premium to Friday’s closing price of Rs 946. Citi and Axis Capital are said to be working on the open offer. KPMG Corporate Finance is the lead adviser to L&T.
Mindtree chairman and cofounder Krishnakumar Natarajan meanwhile warned against a hostile takeover bid in a letter to the L&T board on Saturday. The engineering conglomerate is keen to act before Mindtree’s board meeting on Wednesday to consider a buyback proposal that’s seen as an attempt to thwart the L&T bid.
Shares of L&T Infotech closed 3.33 per cent down at Rs 1,573.30, while Mindtree shares closed 1.74 per cent higher at Rs 962.50 on BSE.
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