With Bermuda-headquartered Orient-Express Hotels rejecting the $1.2 billion takeover bid by Indian Hotels Company, the Indian company's stock touched a intra-day high of Rs 63.5, a rise of 2.67 per cent compared to its previous day close.
The company along with Charme II fund, promoted by Ferrari chairman Luca Cordero di Montezemolo, had offered to pay $12.63 per share to Orient-Express, however, the bid was rejected on grounds of being 'deeply unattractive'. However, the Indian company in a release sent today has hinted that it is open to providing an improved offer to Orient-Express. "Indian Hotels and Montezemolo & Partners on behalf of Charme II Fund today acknowledged the recent announcement by Orient-Express Hotels and are reviewing the position taken by the Orient-Express Board and considering their options with respect to their offer to acquire Orient-Express", the release stated. Bank of America Merrill Lynch is serving as sole financial advisor to Indian Hotels, Shearman & Sterling LLP is serving as legal advisor to Indian Hotels, and Hotel Advisor (UK) is providing industry expertise for the proposed transaction. The Indian Hotels stock has dropped by 10.55 per cent on the Bombay Stock Exchange (BSE) since it made the bid last month.
The company which has a consolidated debt of Rs 3,800 crore has already announced that it could go in for more debt in future to fund the acquisition of shares of Orient-Express.