Indian Hotels' offer to buy Orient Express may lapse: Srcs

Indian Hotels offer for acquiring US-based Orient Express may lapse as the Indian company did not modify offer price within stipulated time, reports CNBC-TV18 quoting sources.

In November, US-listed Orient-Express, which owns the Hotel Cipriani in Venice and the '21' Club in New York, rejected a USD 1.2 billion unsolicited takeover offer from Indian Hotels as too cheap. Indian Hotels have not revised the bid for acquisition after that.

Indian Hotels had booked a loss of Rs 305 crore for investment in Orient Express in the fourth quarter earnings. Following the news, share of the company today ended higher nearly 4 percent at Rs 50.20 on the Bombay Stock Exchange.

SP Tulsian of sptulsian.com believes that the stock can now see some buying interest coming and may also move higher from here on. “Things are not really very healthy at for all the hotel industry. If Indian Hotels would have gone for Orient Express then that would have seen quite negative. We have seen the effect of a similar kind in Apollo Tyres. I won't say that the impact would have been severe but this overhang has gone,” he added.