Taj to review options over Orient-Express bid
12 Feb 2013
Tata Group's hospitality arm, Indian Hotels' board yesterday said that it would review its options over its unsolicited bid for US luxury hotel chain Orient-Express Hotels by March.
While reporting a 28-per cent rise in December ended quarter net profit, Anil Goel, executive director finance told at the news conference that the company cannot leave the offer open for an indefinite period.
In November 2012, Indian Hotels teamed up with Charme II Fund, an Italian fund managed by Montezemolo and Partners SpA, to acquire Orient-Express Hotels for $12.63 per share in cash or $1.86 billion (Rs9,600 crore) including $530 million debt.
Montezemolo and Partners is an investment vehicle run by Luca Cordero di Montezemolo, chairman of Ferrari and an old friend of RatanTata.
Indian Hotels, which already holds a 6.9-per cent stake in Orient Express, had in 2007 and 2009 been rejected when it attempted to acquire a significant stake in the US and Europe luxury hotel chain operator.
Paul White, the former Orient-Express CEO who had rudely rejected Indian Hotels' earlier approaches, resigned from the company's board in July 2012.
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