New Delhi: Bengaluru-based IT firm Mindtree will see the return of its co-founder, said reports. Subroto Bagchi tweeted his decision and said he was resigning from his government role to help the company fend off “an imminent threat of hostile takeover” by Larsen and Toubro (L&T). Also Read - Bengaluru: Over 80 Labourers at Namma Metro Phase II Site Test Positive For COVID-19
Reports say this will be the first-ever hostile takeover move in India’s technology industry. The four remaining founders of the two-decade-old firm, along with Bagchi, Krishnakumar Natarajan, N S Parthasarathy and current CEO Rostow Ravanan, together own 13.3 per cent of Mindtree and are resisting the L&T bid. Also Read - ICICI Bank, L&T Chosen as Top Muhurat Session Picks
Bagchi is involved with the Odisha government as Chairman of the Odisha Skill Development Authority. On Sunday, he tweeted, “An imminent threat of hostile takeover of Mindtree has made me 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.” Also Read - Amid Election Results, Sensex Jumps Over 250 points and HCL Tech Up 3%
An indignant Bagchi also tweeted that Mindtree was not an ‘asset’ that could be bought or sold. “It is a national resource…I need to be there in its time of difficulty…”
Bagchi’s decision comes amid speculation that L&T is in advanced stages of negotiations to buy out a 20.4 per cent stake held by Cafe Coffee Day’s founder V G Siddhartha who is also Mindtree’s largest shareholder.
Reports also say that Mindtree has called a board meeting this week.
Meanwhile, the shares of Mindtree climbed around 2 per cent on the BSE sensex in Monday’s session amid reports of a takeover by L&T.