There is threat of a hostile takeover of Mindtree and it comes from none other than L&T. The company is planning to buyout the 21% stake of the largest shareholder – Coffee Day founder, V Siddhartha at a price of Rs.981/share, after which it will have to make an open offer to the shareholders to buy 26% stake.
Fearing this, the Mindtree co-founder, Subroto Bagchi resigned on Sunday as the head of Odisha Skill Development Authority and has come back today to Mindtree to rescue his company from any hostile takeover.
Bagchi Tweeted, “An imminent threat of hostile takeover of Mindtree has made me to resign from the Government to be able to go, save the company. I must protect the Tree from people who have arrived with bulldozers & saw chains to cut it down so that in its place, they can build a shopping mall.”
Following the return of the co-founder and the drama, the stock price has reacted positively, going up almost 2.5% to Rs.968.55. Its 52-week high and low stands at Rs.1181.90 and Rs.741 respectively.