Subroto Bagchi, co-founder of Mindtree, on Sunday said he is resigning from his government role to help the Bengaluru-based IT company fend off “an imminent threat of hostile takeover”. Bagchi, who co-founded Mindtree in 1999, is currently involved with the Odisha government as Chairman of the Odisha Skill Development Authority.
“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 said on Twitter.
“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.” Bagchi is currently a non-executive director at Mindtree.
The development comes amid speculation that Larsen and Toubro is in advanced stages of negotiations to buy out a 20.4 per cent stake held by Cafe Coffee Day’s founder V G Siddhartha – Mindtree’s largest shareholder.
Mindtree has called a board meeting this week amid reports that L&T Infotech is planning to buy stake in Mindtree. In a filing to stock exchanges on March 15, Mindtree said its board will meet on March 20 to consider the proposal to buyback the fully paid-up equity shares of the company.