Mindtree board to discuss proposed buyback offer

Bengaluru, March 20 (IANS) Leading IT services firm Mindtree’s board of directors will meet on Wednesday to discuss the company’s proposed buyback, in the backdrop of diversified conglomerate Larsen and Toubro Ltd’s (L&T) bid to take over.

"The proposed buyback will be discussed by the board on Wednesday. Our plan for buyback will be based on the evaluation. The method and price for the buyback will be decided…," the city-based company’s Chief Executive Rostow Ravanan told the media on Tuesday.

The L&T on Monday bought 20.4 per cent stake from Cafe Coffee Day founder V.G. Siddhartha for about Rs 3,300-crore, in a bid to take over the IT services firm.

The company had said it would also buy additional stake in Mindtree through an open offer.

"The independent directors will look into whether to support the open offer or not, because as per law they have to make a recommendation to shareholders whether to participate or not," Ravanan said.

The independent directors would set up a committee to evaluate the open offer, Mindtree said.

Alleging a "hostile" takeover attempt by L&T, the Bengaluru-based company has maintained that it continues to have the support of its investors and stakeholders in opposing the takeover.

"All our large shareholders have given us their support through this journey," Ravanan added.