Coffee Day Enterprises gained as much as 7 percent to Rs 307.8 on BSE in intra-day trade on Wednesday amid reports that Larsen and Toubro Ltd (L&T) is preparing for a hostile takeover of Mindtree.
According to Mint, L&T is set to sign a binding deal to buy Cafe Coffee Day founder VG Siddhartha's stake in Mindtree and the deal is likely to be announced in the coming weeks. According to the report, the deal will pave way for an open offer by L&T to increase its stake in Mindtree to 51 percent. This, the report added, will also lead to Mindtree’s current management losing control of the company.
The development comes as the battle for the control of Mindtree intensified in the last few months. In addition to L&T, KKR and Baring PE Asia have also shown interest in buying the stake, the report added.
Cafe Coffee Day holds 16.37 percent stake in the company, valued at Rs 2,505 crore.
At 12:35 pm, the stock was trading at Rs 299.45, up 4 percent. In comparison, the S&P BSE Sensex gained 0.2 percent at 37,608.
However, shares of L&T were down by 1 percent at Rs 1,374.75 post the report. Mindtree gained as much as 2.1 percent at Rs 936 in intra-day trade today.
First Published: IST