Mumbai: IT services major Mindtree on Tuesday dropped a plan to buy back shares in a bid to counter Larsen & Toubro Ltd’s hostile takeover bid.
The technology services and digital transformation company will also form a committee of independent directors to evaluate L&T’s offer, it said in a statement.
This comes after L&T offered to buy 5.13 crore Mindtree shares at Rs 980 each to add to the 20.32 percent stake it agreed to buy from coffee baron V G Siddhartha.
“After detailed deliberation and discussion, the board in its meeting today decided to immediately constitute the committee of independent directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders,” the statement said.
The hostile takeover bid which was shunned by Mindtree’s founders last week, who said it would not create value for the firm or its shareholders.