Mindtree taps institutions to fend off L&T's hostile takeover bid

Support of key institutional investors crucial in case of an open offer

The Mindtree founders are reaching out to top clients and engaging with key institutional investors to fend off attempts by engineering major Larsen & Toubro (L&T) from making a hostile takeover bid, sources in the know said. 

Last week, the Bengaluru-headquartered firm said its board would consider a share-buyback proposal in its next meeting scheduled for March 20. The announcement of a possible share repurchase has come amid reports of L&T’s board giving the green signal to buy Café Coffee Day founder V G Siddhartha’s 20.41 per cent stake in Mindtree.

As corporate action like a buyback usually pushes up the share