Larsen and Toubro Ltd (L&T) is set to buy a 20.4 per cent stake in Mindtree co-owned by Cafe Coffee Day (CCD). The multinational construction company will buy up to 51 per cent stakes in Mindtree. L&T is acquiring the software services company to gain control over the service company. The construction company will take out the salaries to all the employees after the deal.

As per Securities and Exchange Board of India (SEBI) rules, the acquirer can take control over the listed firm after it acquired almost 25 per cent of the firm in a public announcement. Mindtree for the last year was in need to find an investor who can offer a higher price to claim a stake in the firm but it was only L&T, which was offering a much higher stake for a single share.

Earlier, Café Coffee Day (CCD) founder V.G. Siddhartha along with his two CCD affiliate firms had held stakes in the Mindtree, but the latest deal set by the L&T will also acquire the stakes of Siddhartha.

Meanwhile, Mindtree co-founder Subroto Bagchi had quit as chairman of the Odisha Skill Development Agency. The co-founder has said that he will support Mindtree from the current threat. Subroto even tweeted that Mindtree has not been designed as an asset to be bought and sold but as it is a national resource. It has a unique culture that humanizes the idea of business. It sets the standards of corporate governance. He has said that it needs to be there in its time of difficulty.

He has earlier tweeted that an imminent threat of the hostile takeover of Mindtree has made me resign from the Government to be able to go, save the company. He also said that he should protect the IT company from people who have arrived with bulldozers and saw chains to cut it down so that in its place, they can build a shopping mall.

If sources are to be believed, Mindtree co-founders have reached to other top clients and institutional investors to fend off the L&T deal over the IT company. TThe deal which is set to clear within days has invoked its founders to stop the deal so that the multinational construction firm L&T cannot take control over the Mindtree.