LTI, Mindtree boards may meet next week to approve mergerLTIM - 5379 Change: -15.35 (-0.28 %)
News: Media reports Boards of LTI and Mindtree may meet in first week of May to finalize merger. The report further says that Mindtree CEO is expected to be CEO & MD of the merged entity, CFO and CHRO is also expected from the mindtree while MIndtree brand would be discontinued.
Views: The contours of the deal are not known in terms of (share wap ratio and other details in terms of deal structure etc ). Some of the benefits which merged entity could enjoy are i) as far as vertical mix is concerned apart from BFSI and Retail, there is no major overlap, which means the merged entity would be catering to wide set of clients and also could be at lower risk in terms vendor consolidation ii) Pricing power benefit , since as a joint entity, they can command better pricing iii) there could be cost synergy benefits in terms of rationalization of SG&A, Manpower etc. we would see some senior management exits which might act as a near term headwind in our view .