L&T’s hostile takeover bid for Mindtree gets thumbs-down from analysts

Larsen & Toubro’s (L&T’s) hostile takeover bid for Mindtree at Rs 980 per share in an all-cash transaction has got a thumbs-down from analysts. The hostile takeover, if goes through, will be a misfit for the engineering and construction giant, at least in the short term.

On Monday, L&T entered into a deal to purchase the 20.32 per cent stake of Mindtree’s single-largest investor, V G Siddhartha, at Rs 980 per share in an all-cash transaction. L&T now plans to buy an additional 15 per cent from the market at Rs 980 per share, for a consideration of Rs 2,434 crore.

The price offered to shareholders as part of the open offer for an additional 31 per cent and also to the Cafe Coffee Day promoter is just 1.81 per cent higher than the Monday closing price of Rs 962.50 at the BSE.