Leading IT services firm Mindtree on Tuesday said the company's stakeholders, including investors and employees, were all "united" in opposing diversified conglomerate Larsen and Toubro Ltd's (L&T) bid to take it over.
"Our investors and employees stand united against this hostile takeover attempt by L&T, which is unprecedented in the Indian IT industry," the company's Chief Executive Rostow Ravanan told the media at the company headquarters.
Stating that the takeover attempt did not have any "strategic advantage", Mindtree's top executives said it could "undo" all the progress made by the company so far.
"You (L&T) are a company with a turnover of ₹120,000 crore, you are 18 times the size of Mindtree. Why can't you build a great technology business with your resources and capability...," company's co-founder Krishna Kumar Natarajan said.
Co-founder Subroto Bagchi was also present.
L&T on Monday bought 20.4% stake in Mindtree from Cafe Coffee Day founder VG Siddhartha for about ₹3,300 crore and said it would also buy additional stake in the company through an open offer.
Mindtree's promoters, however, declined to disclose their plan of action to oppose L&T's takeover bid.
"We will hold discussions with all the stakeholders. Our Independent Directors will set up a committee and evaluate the deal," Ravanan said.
Asserting that the takeover would demolish shareholder value for both companies, the company said it will seek legal opinion for its options in opposing the takeover.
"Mindtree Minds (employees) have signed up for a mission, not just a salary. Take their mission away and they will go. What will you (L&T) be left with?" Natarajan asked.