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Mumbai: Engineering major Larsen & Toubro (L&T), which mounted a hostile takeover of software firm Mindtree with a 10,733-crore bid on Monday, ruled out merging it with its IT arm for the time being.

L&T on Monday announced a hostile takeover bid involving a three-pronged acquisition of Mindtree, wherein it will pay 980 a share for a 20.3% stake of V.G. Siddharth, buying 15% from the public and mounting an open offer at 980 a share later. Thus, it plans to acquire 67% for a consideration of 10,733 crore.

"We have not thought about integrating Mindtree with us (L&T Infotech). For the time being, it will be run as an independent entity," L&T managing director and chief executive S.N. Subrahmanyan said on Tuesday.

Subrahmanyan invoked parallels with Bollywood dramas, saying with 'dil and pyaar' (heart and love) it will be able to win over everybody.

Describing the deal as a meeting of two like-minded people, Subrahmanyan said V.G. Siddharth, whose 20.3% stake the company bought out at 980 a share, had approached them three months back for buying him out.

"It was a meeting of minds between us and Siddharth," Subrahmanyan said, adding, the Cafe Coffee Day owner wanted to house his shareholding with a group where he saw the same governance values and ethics.

"The senior management at Mindtree are good friends with us and are people of repute and we see a lot of positivity in going ahead with the deal," he said.

He also reassured employees that L&T is a 80-year-old company with strong governance values.

"Mindtree will be run as an independent company, L&T will provide board oversight. We hope better sense and rationality will prevail," Subrahmanyan said.

L&T group chief financial officer R. Shanker Raman said there was a relative upside to Mindtree and that's what made them buy the company. Both companies (L&T Infotech and Mindtree) were $1 billion each and had enough opportunity to grow respectively, he added.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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