Shareholder advisory firms bat for more details from L&T

Terming the Mindtree takeover bid as an hostile acquisition attempt by L&T, shareholder investment advisors are of the view that details about the deal and how it plans to steer the combined entity ahead should be forthcoming.

L&T has agreed to buy the 20.32 per cent stake in Mindtree with VG Siddhartha, Cafe Coffee Day founder,for Rs. 3,269 crore. Mindtree’s promoters have termed L&T’s bid a ‘grave threat’ and ‘value destructive’ to the organisation. L&T has also made an offer to buy up to 66 per cent stake in Mindtree for around Rs. 10,800 crore.

“Unlike brick and mortar companies, the technology businesses are highly intricate and hence L&T should come out with more details to reassure small investors as to how it plans to steer the company ahead or what is it’s actual plan,” said JN Gupta, Founder, SES proxy advisory firm.