Tatas looking at options after OEH takeover rejection
"Indian Hotels and Montezemolo & Partners on behalf of Charme II Fund today acknowledged the recent announcement by OEH (of rejecting its takeover bid), and are reviewing the position taken by the OEH board and are considering their options with respect to their offer to acquire the hotel," IHCL said in a statement.
Shares of IHCL, after rising over 3% in morning trade, pared gains to close at R63.65, almost flat over Thursday’s close. Orient Express had on Thursday rejected the “unsolicited” $1.86-billion buyout offer by the Tatas, saying the bid significantly undervalues the New York-based company.
"After consideration, and in consultation with independent financial and legal advisors, our board has unanimously concluded that your proposal significantly undervalues Orient-Express and its future prospects," Orient Express chairman J Robert Lovejoy said in a letter to Indian Hotels Company vice-chairman RK Krishna Kumar. Indian Hotels had offered $12.63 per share in cash to acquire all the outstanding shares of Orient Express.
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