Changing Perceptions and Transforming Outcomes : L&T Acquisition of Mindtree

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Abstract

On March 18, 2019, Yuvraj Mehta, head Corporate Brand Management & Communications (CBMC) at Larsen & Toubro (L&T), heard about negative media narratives against L&T, following a high-profile merger and acquisition (M&A) between the company and Mindtree. Some of the allegations against L&T were “hostile takeover” and “destruction of Mindtree’s culture.” Mehta was faced with the issue of influencing all stakeholders; turning the tide and changing the narrative from hostile takeover to continuity, growth and profitability; and integrating Mindtree and its employees and culture into L&T. Compared to L&T’s previous acquisitions, which were small, and other strategic initiatives, which were mostly organic, Mindtree acquisition was the largest (in value terms) in its history. It was also the most complex as Mindtree promoters aggressively resisted the acquisition, and L&T had to acquire a large number of shares through an open offer. Media speculations began in January 2019 when L&T, the engineering and construction giant, planned to acquire a majority stake in the young IT firm, Mindtree. Soon the reporting changed to aggressive media ranting. Time was at a premium. Mehta knew he would need to begin strategising almost immediately. How should he proceed? What should be his first move?

Additional Information

Product Type Case
Reference No. COMM0025
Title Changing Perceptions and Transforming Outcomes : L&T Acquisition of Mindtree
Pages 22
Published on Sep 10, 2020
Year of Event 2019
Authors Kaul, Asha; Agarwalla, Sobhesh Kumar;
Area Communications (COMM)
Discipline Accounting, Communication, Finance
Learning Objective Identify the nature of hostile takeovers Analyse the role of varied stakeholders in an M&A Understand the communication challenges in an M&A Evaluate the significance of appropriate communication in an M&A.
Keywords M&A; Crisis; Stakeholders; Hostile Takeover; Communication; Corporate Reputation
Country India
Organization L&T, LTI, Mindtree
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