Tata group's Indian Hotels drops bid for Orient-Express

Written by ENS Economic Bureau | Mumbai | Updated: Nov 9 2013, 14:15pm hrs
Tata groups Indian Hotels Company Ltd (IHCL) on Friday said it would not pursue its $ 1.86 billion bid to acquire the Bermuda-based Orient-Express Hotels.

On October 18, 2012, the IHCL board had approved making an offer to the Bermuda-based firm seeking their consent for IHCL, through its wholly-owned subsidiary, to acquire the outstanding 93.1 per cent Class A Common Shares of Orient-Express Hotels Ltd.

At a meeting of the Board of IHCL held on November 8, 2013, after taking into account all factors, the current economic environment as also other opportunities and priorities for the company, the Board has decided not to pursue the afore mentioned transaction, the company said in a filing to the BSE.

This offer was earlier rejected by Orient-Express Hotels Ltd, terming it as unsolicited.

IHCL said Orient-Express Hotels had written to its board saying: It was not an opportune moment for them to consider a sale of their company.

All contracts that were entered into to facilitate the bid, have all since been cancelled. An appropriate amended disclosure is being concurrently filed with the Securities Exchange Commission, USA, IHCL said.

Indian Hotels, along with Charme II Funds founded by the family of Ferrari Chairman Luca Montezemolo, had offered $12.63 per share in cash to acquire the outstanding 93.1 per cent stake in Orient-Express in October last year.