As Cafe Coffee Day founder VG Siddhartha's stake sale in Bengaluru-headquartered mid-tier IT services firm Mindtree is expected to close soon, Ashok Soota, who was the co-founder and former chairman of the company, seems to have sided with the firm's management.

In an exclusive interview to CNBC-TV18, Soota said the best outcome for Mindtree would be a white knight investor instead of a deal that could lead to a possible takeover.

Siddhartha and his associates hold nearly 21 percent in Mindtree and is in talks with engineering and construction major Larsen & Toubro (L&T), which the management is worried could lead to hostile takeover.

However, the Mindtree management is in talks with investors such as private equity firm KKR to set up counter offer to ensure they do not lose control of the company.

Soota said the ideal situation for Mindtree is to get a white knight rather than another player, who may have their own plans, but did not name L&T or KKR in particular.

He said the Mindtree management may have a cash crunch and they can leverage both debt and equity for a "win-win" deal.

In 2011, Ashok Soota, currently the founder and executive chairman of Happiest Minds, stepped down from Mindtree and the stake was bought by Siddhartha.

Calling Siddhartha’s decision to sell his stake was not surprising as he has been a venture capitalist in Mindtree since 1999 and was an angel investor for the current executives from 2011, "It is natural to monetise and it is not surprising that he is looking for potential buyers."

“The Mindtree management has done a good job. They have maintained good standards of corporate governance and have a runway ahead. It is logical for them to want to retain control. If I was in the current management place, I would have made similar effort,” he added.

Siddhartha is said to have entered an enabling resolution with L&T for a deal of Rs 975-1,000 per share, which is lower than initial offer of Rs 1,200 per share.

Mindtree, in the December 2018 quarter, posted a 35.1 percent rise in consolidated net profit, and 29.7 percent jump in revenues at Rs 1,787.2 crore over the year-ago period.