The board of Larsen & Toubro (L&T) will not increase the open offer price to Mindtree shareholders even as the firm is committed to increasing its ownership in the IT services company to 26 percent, Times of India reported.
On May 1, L&T bought around 20 percent stake of VG Siddhartha and Cafe Coffe Day (CCD)'s stake in Mindtree through block deal worth around Rs 3,200 crore. L&T has purchased 0.75 percent stake in Mindtree for Rs.113 crore this week.
The decision of L&T not raising its offer comes ahead of the Mindtree's independent directors meeting in which they will take a decision on the Rs 980 per share price.
Top L&T executives told the paper that they considered all material facts before deciding against a higher offer price and added that the IT services firm's stock traded an average of 16.5 times over the last five years.
Sources told the paper that L&T is also likely to seek board representation and can also ask for promoter status.
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