Reviewing options over Orient-Express: Indian Hotels

Tata group's hospitality firm Indian Hotels Co Ltd (IHCL) today said it is reviewing options regarding its failed USD 1.86 billion bid to acquire Orient-Express Hotels.

"The company (IHCL) had received a response from Orient-Express Hotels on November 8, 2012 wherein, the view of the company's (Orient) board was that it would be in their opinion a highly disadvantageous time to sell the company (Orient).

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The Company (IHCL) is reviewing its options in this regard," IHCL said while declaring its third quarter results. Last year in October, IHCL had made a bid for USD 1.86 billion to acquire all outstanding class A shares of Orient-Express Hotels, which termed the offer as "unsolicited".

Indian Hotels had offered USD 12.63 per share in cash to acquire the outstanding 93.1 per cent stake in Orient Express. This was the second takeover attempt by Indian Hotels, which holds 6.9 percent in Orient-Express.

Indian Hotels along with Charme II Funds, founded by the family of Ferrari chairman Luca Montezemolo had made the all-cash offer. Later in the month, IHCL had even sought a meeting between Orient-Express Hotels Chairman J Robert Lovejoy with the then Tata group Chairman Ratan Tata along with Ferrari Chairman Luca Montezemolo to discuss the issue.

In 2007, Tatas had attempted to increase holding in the US entity but the efforts failed due to stiff opposition from the then management of Orient Express.