PRESENTED BY:

ROSHNI DUTTA-20BSP1962
ROHIT VERMA-20BSP1946
 INTRODUCTION

– The Corporate Brand management head Yuvraj Mehta made an announcement

that there will be merger and acquisition of Mindtree .
– This made a total destruction and hostile speculation of Mindtree Culture.
– All the stakeholders ,media, employees ,investors ,bank and the governments
turn the tide and change the narrative from hostile takeover to continuity
growth and profitability.
– Mindtree acquisition was one of the highest and also very complex in nature.
– Media acquisition wanted to acquire a majority stake in the Mindtree.
 MINDTREE

– Mindtree delivers digital transformation and

technology services from ideation to execution,
enabling Global 2000 clients to outperform the
competition. “Born digital,” Mindtree takes an agile,
collaborative approach to creating customized
solutions across the digital value chain. Our deep
expertise in infrastructure and applications
management turns IT into a strategic asset. Whether
you need to run your business more efficiently or
accelerate revenue growth, Mindtree can get us there
wherever we want .
 HEAD OF L&T

YUVRAJ MEHTA
• Yuvraj Mehta has been associated with
Reliance Infra , Samsung, PDIL .
• He had developed expertise in various
aspect of branding and corporate
reputation management .
• He had handled many crises in the past.
• His communication has won him
various National and International
awards
 MINDTREE ACQUISITION

– Bengaluru-based Mindtree Ltd has signed an agreement to

acquire the NxT Digital Business, the cloud-based platform of
the Larsen & Toubro (L&T) Group, for a total consideration of
₹198 crore.
– The acquisition is expected to enhance Mindtree’s cloud-based
internet of things (IoT) and artificial intelligence (AI)
capabilities for Industry 4.0, the company said in an exchange
filing on Thursday.
– NxT Digital Business was founded as a startup with broad
digital capabilities within L&T in FY19. It has played an
instrumental role in extensive applications of IoT technology
 ISSUES THAT TOOK PLACE

• Just two weeks prior to L&T, a PE firm was very close to

finalizing the deal with Siddhartha, one that was acceptable to
Mindtree.
• V.G. Siddhartha's Mindtree stake sale to L&T fetched him only
₹16.7 crore more than the second highest offer by a PE firm.
• The founder of Cafe Coffee Day earned only ₹16.7 crore more
than the second-highest price of ₹975 a share offered by a global
private equity (PE) firm.
 BUYBACK SHARES

• On 15 March 2019 Mindtree announced that the board

meeting to be held on March 20 .
• There will be possible takeover by L&T.
• Investor was looking for a buying strategic stake.
• It is very unusual for a buyback to happen when the
transaction is done by a large Investor.
• The cost of Transaction generally goes up.
 CULTURE INCOMPATIBILITY

– The confusion led to varied interpretations by media and independent experts and
analysts, stating that L&T, primarily a construction company with little expertise in the
services industry, may destroy the culture needed for the smooth functioning and
growth of a young IT company like Mindtree.
– They now had to communicate with key stakeholders without divulging too much
about L&T’s future moves and provide rational arguments without bruising the
feelings of the Mindtree employees.
– the four founding promoters of Mindtree, who viewed the L&T bid as a strategic
move to end their control, started resisting the acquisition.
 THE DRAWING BOARD
– While the media interaction strategies were being formulated, market analysts and media started
reporting that L&T will advance its stake-buying deal and announce the same before the
scheduled Mindtree board meeting of March 20, 2019.
– For this purpose, the team decided to rely on traditional media outlets, including print, TV, online
and wire, as, by and large, they were perceived to be a source of authentic news and had ripple
effects on other mediums.
– Deriving a high degree of mileage from such public posturing, the media and social media began
publishing news flagging ‘moral’ questions on what it labelled as “the first-ever hostile takeover
in the Indian IT industry.
– Second, reinforce in media L&T’s strong legacy, corporate governance practices,
professionalism, nation-building work, employee friendliness and the trust of all stakeholders that
the company had been enjoying for decades.
 CONT

– L&T remain committed towards achieving overall growth in our business by focussing on execution
and increasing shareholder value.19 With the filing of the public announcement, L&T placed an
order with its broker for an on- market purchase of up to 15 per cent of the share capital of
Mindtree.
– L&T also announced an open offer to purchase up to 31 per cent (under the extant takeover
regulations) additional outstanding shares at the same price, which demonstrated its intent to
acquire a majority stake in Mindtree.
– The company appraised the stock exchange and the media that it had agreed to purchase a 20.32
per cent stake in Mindtree held by the CDEL group for INR 32.69 billion at INR 980 per share.
 REACTION OF L&T

– Mindtree promoters informed the stock exchange that they condemned the takeover bid by
L&T and were unconditionally opposed to it
– Meanwhile, a steady stream of tweets with the hashtag #MindtreeMatters started on March
18, 2019, to rally support for the promoters, 21 who also promoted them
– They termed this “hostile takeover” as a grave threat to Mindtree that could undo all the
progress and disrupt the client–partner relationship.
 L&T SPEAKS

– Although the decision was taken to avoid a social media campaign, Mehta made a
conscious decision to upload press conference videos on LinkedIn and circulate
them through WhatsApp to large stakeholders and journalists.
– After facing the queries from media, they met few leading business journalists from
select media outlets with a broader reach among targeted stakeholders, such as
bankers, FII’s, employees and business communities.
– Both L&T and Mindtree press conferences were scheduled on the same day, posing
the challenge of our messages getting diluted.
– Further, the message was selectively promoted through select social media handle -
LinkedIn, YouTube and WhatsApp
 MINDTREE SPEAKS

BAGCHI NATARAJAN

– Bagchi, Natarajan and Ravanan in no uncertain terms referred to the

takeover bid “a grave threat to Mindtree collectively built over 20
years.” “We believe, overall, it is in the best interests of our
shareholders, Mindtree minds and our organisation to continue
opposing the takeover attempt,” they stated, adding that “there had
been a tremendous outpour of sentiments from Mindtree minds on
Twitter under #MindtreeMatters, expressing a strong desire to retain
independence and culture.
 MINDTREE PROMOTERS CRY
WAR

– The co-founders had rejected “huge bags of money to give

Mindtree away.”24 The letter presented details of the company’s
inception and its 20-years journey in which it became a global
brand with a vision of USD 1 billion revenue.
– On March 19, 2019 the Mindtree management also addressed a
press conference at the Bengaluru headquarter and voiced their
opposition.
– The founders posed five questions to L&T, urging them to look at
the acquisition through an emotional lens”25,26 .
 THE CHANGING ENVIRONMENT

– L&T open offer to buy 31 % of Shares of Mindtree .

– L&T would acquire 51.3 million shares at INR 980 per share.
– L&T wants to offer a good amount of price to its customers in the
market.
– L&T provided an open offer which commenced on May14.
 CONCLUSION

– Proper communication should take place between

Employees and Stakeholders.
– Different Narratives are taking place between
traditional and Social Media.
– Focusing on Mindtree’s Quarterly results, Revenue
and growth outlook.