Mindtree agrees to evaluate L&T offer

L&T looks well on its course to takeover Mindtree. Mindtree promoters' vociferous resistance to a change in control; outpour of promoters' anger and emotions; letters to employees and investors to stand against L&T's hostile acquisition; mud-slinging on L&T's corporate morale and all other efforts to stop L&T seem to be going futile. All said and done, independent directors were not in favour of the share buyback planned by Mindtree to fend off L&T's offer. While L&T's job now seem to get easier with Mindtree calling off buyback, in my opinion, the real victory is for independent directors who stood for the interest of minority shareholders! How many of us see L&T's takeover of Mindtree fair? #acquisitions #business #shareholder #technology #banking #investments #fintech #finance

What's happening at #Mindtree!!! Every #management exists to run a company on behalf of it's shareholders. In a free market, shareholders have many ways of expressing their pleasure or displeasure at the way their company is run. Shares can change hands and a company can have a new set of shareholders. Mostly those that buy shares have no interest in running the company. In rare cases they do! And there are safeguards provided by SEBI for minority shareholders. As long as the guidelines are not violated, it is silly to describe any attempt at acquiring a company as "Marauders at the gates out to destroy an Eden"! Any attempt by management to thwart a fair process of shareholders making a choice by using company money to buyback shares is in my opinion totally unethical! Managements don't own companies even if they have founded them! They run them on behalf of shareholders and should know when to go gracefully!

Lessons from the Hostile Takeover of #Mindtree by #L&T. L&T has bought Siddhartha's 20.4% stake in Mindtree and launch an open offer for an additional 31% stake. To counter this #HostileTakeover Mindtree is planning for a Share Buyback or to tap Institutional Investors. #Lesson1 Why Private Equity firms are not helping Mindtree Mainly two reasons for this ? The Stiffness of Mindtree Management over shareholding. ? To avoid acquisition tussle with conglomerate having revenue of approx. ?1.2 Lakh Crore. #Lesson2 What caused this situation? ? Siddhartha who was Mindtree’s biggest shareholder had exit plans from last 10 months & even sought the support of founders for monetizing his shares but management has overlooked his request which leads them into this. ? Valuing your biggest shareholders must be the organization’s first priority. #Lesson3 Will the buyback route help Mindtree in a real sense? ? Even if we considered the company will buyback till maximum allowed limit, Mindtree can only buy 4.7% of outstanding shares. This Buyback option which is opposite to typical Pre-Hostile Defenses like Poison Pill raises questions like, Is this time for Indian companies to add #PoisonPill & #RestrictedVotingRights in #CorporateGovernance to avoid such takeovers. #M&A #Deals

"I will protect the tree" #mindtree . Such strong words will send shivers like Tesla coils. But will Bagchi be able to save the Tree with #kkr and Buyback? Hawk eyes watch out for the Tech-Sur-gical Strike!