Mindtree Co-founder Subroto Bagchi Quits Govt Post to Save Company from L&T's 'Hostile Takeover'
Co-founder & former CEO Subroto Bagchi is returning to Mindtree to ‘save the company’ from Larsen and Toubro Ltd. (L&T)'s 'hostile takeover'.
Representative image (Getty Images)
Engineering to construction conglomerate Larsen and Toubro Ltd. (L&T) is set to takeover Bengaluru-based IT services firm Mindtree Ltd. by buying the 20.4% stake held by Café Coffee Day (CCD) founder V G Siddhartha along with his two Café Coffee Day affiliate firms in Mindtree anytime on Monday and in order to save Mindtree from this "hostile takeover", co-founder and ex-CEO Subroto Bagchi, resigned from his government post to "save the company".
Subroto Bagchi resigned on Sunday as the head of Odisha Skill Development Authority and will return to Bengaluru, he said on his Twitter handle.
An imminent threat of hostile takeover of Mindtree has made me to 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.— Subroto Bagchi (@skilledinodisha) March 17, 2019
“An imminent threat of hostile takeover of Mindtree has made me to 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,” Bagchi wrote.
Bagchi said that Mindtree has not been designed as an “asset” to be bought and sold. “It is a national resource. It has a unique culture that humanizes the idea of business. It sets the standards of corporate governance. I need to be there in its time of difficulty. Hence the hard decision to return,” he added.
Mindtree has not been designed as an “asset” to be bought & sold. It is a national resource. It has a unique culture that humanizes the idea of business. It sets the standards of corporate governance. I need to be there in its time of difficulty. Hence the hard decision to return— Subroto Bagchi (@skilledinodisha) March 17, 2019
Meanwhile, according to a Moneycontrol report, Mindtree board members Krishnakumar Natarajan and Rostow Ravanan have written to the L&T against the possible hostile takeover.
In the letter that was sent to the L&T board and shared on Twitter by CNBC TV18, the reports of hostile takeover by L&T has alarmed various stakeholders of Mindtree including institutional investors, clients, customers and employees.
Many of them have expressed to the management unequivocally that they would not like to be a part of the organisation that is “culturally perceptibly different from Mindtree”, the report said.
“I also recollect several email exchanges between us in Jan/February 2019 where we had expressed our concerns based on data relating to previous integrations of large IT service providers that any transaction with you would be value destructive to Mindtree and all its stakeholders,” the letter reads.
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