Larsen & Toubro Ltd.

Larsen & Tourbo would meet to pass anenabling resolution that will allow the company to explore inorganicopportunities for growth. Even though L&T has rarely been an acquirer ofcompanies, the meeting is taking place against the backdrop of its ongoingnegotiations with Atul Nishar, the founder chairman of Hexaware Technologies,to acquire a majority stake in his company. Atpresent, the promoter stake in Hexaware stands at 28 per cent, while GeneralAtlantic holds a little less than 15 per cent and ChrysCapital 9.77 per cent inthe company. With some of the foreign strategic players like NTT Group or NECshowing lukewarm response to Hexaware’s overtures – predominantly due to theexpectation of a high valuation — L&T has emerged as the strongest amongpotential bidders so far.

At this juncture, therefore, L&T’s meetingwould help it pursue its opportunity in Hexaware. A deal will help L&T’s ITarm L&T Infotech – perceived a laggard so far – get scale, size and breakinto the billion-dollar technology club. Interestingly, the L&T meeting istaking place even as the deadline to announce Chairman and MD A M Naik’ssuccessor is drawing close. The company was to name the successor by the end ofMarch or by early April. So, the meeting will again raise speculation about thefuture leadership in India’s largest engineering and construction company.