Shares of L&T, Mindtree slip over 2% post L&T's hostile bid

Shares of Larsen and Toubro (L&T) and IT company Mindtree Tuesday fell over 2 per cent during early trade on BSE after a hostile takeover bid by the former.

Mounting the country's first hostile takeover bid in the IT sector, engineering major L&T Monday made an offer to buy up to 66 per cent stake in Mindtree for around Rs 10,800 crore.

On the BSE, stocks of L&T opened on a negative note at Rs 1,373.95 and slipped 2.23 per cent to Rs 1,348.10.

Besides, Mindtree shed 2.06 per cent to trade at Rs 942.65.

Meanwhile, shares of L&T Infotech rose 6.21 per cent to Rs 1,671.10 in the early trade.

L&T has entered into a deal to purchase Cafe Coffee Day owner V G Siddhartha's 20.32 per cent stake in Mindtree. It has also placed an order with brokers to buy another 15 per cent shares of the company from the open market.

Subsequent to these deals, L&T would make an open offer to buy an additional 31 per cent stake.

"A hostile takeover by Larsen and Toubro, unprecedented in our industry, could undo all of the progress we've made and immensely set our organisation back," the promoters of Mindtree said in a statement on Tuesday.

"We don't see any strategic advantage in the transaction and strongly believe that the transaction will be value destructive for all shareholders. Our collective success depends on building and nurturing relationships with our clients and partners," it added.