Shares of Mindtree fell 1 percent in early trade on Tuesday after L&T said on March 18 it would buy 20.32 percent stake at Rs 980 per share in Mindtree for Rs 3,269 crore.
Larsen and Toubro (L&T) also made an open offer for acquisition of up to 5,13,25,371 fully paid up equity shares having a face value Rs 10 of Mindtree representing 31 percent of the voting share capital at Rs 980 per share, as company BSE Release.
L&T has appointed Axis Capital and Citigroup Global Markets India as the managers to the open offer.
The stock price of L&T also fell about 1.5 percent to Rs 1,359.20.
However, the promoters of the company, Krishnakumar Natarajan, Subroto Bagchi, Rostow Ravanan and Parthasarathy NS in their statement on BSE said they would unconditionally oppose the reported hostile takeover bid by Larsen and Toubro.
We have tried to be co-operative with Mindtree promoters and only time will tell if we can retain them, said AM Naik, Group Executive Chairman of L&T to CNBC-TV18.
We are not looking at a merger in the near future, but if promoters want to exit then we may think of a merger, he added.
Meanwhile in an another deal, Coffee Day Trading, a subsidiary of Coffee Day Enterprises, and VG Siddhartha, promoter of the company along with certain other parties have signed a definitive agreement to sell their entire stake in Mindtree to Larsen & Toubro for a consideration not exceeding Rs 3,269 crore.
At 09:22 hrs, Mindtree was quoting at Rs 952.85, down Rs 9.65, or 1 percent on the BSE.