Larsen & Toubro (L&T) defended its acquisition saying it is “not a corporate raider” but a professionally run, entrepreneurial company seeking to work with another like-minded entity to realize bigger aspirations in technology services while facing promoter opposition in its bid to buy Mindtree.
“It shouldn’t be seen as a hostile takeover,” L&T chief executive and managing director S N Subrahmanyan told in an interview. “We didn’t go looking for Mindtree. Its largest shareholder, V G Siddhartha, approached us with a deal after he tried engaging with the founders regarding his exit. Being a founder-investor, he was emotional about to whom he would sell the stake,” he said.
“We are putting big money in Mindtree. The money made by the sweat of our employees. We are also equally emotional and sentimental” Subrahmanyan said.
He added, “we are not raiders but a nation-building company. We build missiles, nuclear-powered submarines and artillery guns safeguarding the country. I want to tell Mindtree founders to be more positive about the latest developments.”
Coffee Day founder Siddhartha sold his entire 20.32% stake in Mindtree to L&T for Rs 3,269 crore on Monday. L&T has placed orders with brokers to pick up another 15% from the open market, followed by an open offer for an additional 31%. If successful, L&T will have a 66.32% stake in Mindtree for nearly Rs 11,000 crore, or $1.6 billion.
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