Business Standard

Indian Hotels stock rises on Orient-Express refusal

The Indian co has hinted that it is open to providing an improved offer to Orient-Express

Swaraj Baggonkar  |  Mumbai 

With Bermuda-headquartered Hotels rejecting the $1.2 billion takeover bid by 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 Tata Group-promoted Indian Hotels Company, which owns the Taj brand of luxury hotels, had made an unsolicited bid to acquire all of the outstanding shares of Orient-Express Hotels.

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.

RECOMMENDED FOR YOU

Indian Hotels stock rises on Orient-Express refusal

The Indian co has hinted that it is open to providing an improved offer to Orient-Express

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.

With Bermuda-headquartered Hotels rejecting the $1.2 billion takeover bid by 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 Tata Group-promoted Indian Hotels Company, which owns the Taj brand of luxury hotels, had made an unsolicited bid to acquire all of the outstanding shares of Orient-Express Hotels.

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.

image

LIVE MARKET

BSE 26283.09

-109.29 (-0.41 %)

NSE 7971.30

-30.65 (-0.38%)

Widgets Magazine

STOCK WATCH

Company Price() Chg(%)
SREI Infra. Fin. 46.00 8.24
ISGEC Heavy 5646.80 8.17
Mah. Seamless 167.25 7.59
NIIT Tech. 465.55 7.42
Global Offshore 579.05 7.31
> More on BSE Gainers
Company Price() Chg(%)
Rasoya Proteins 0.25 25.00
SREI Infra. Fin. 46.15 8.21
Mah. Seamless 168.10 8.10
NIIT Tech. 466.35 8.01
Mercator 23.50 7.80
> More on NSE Gainers
Company Price() Chg(%)
Sunrise Asian 234.70 -9.97
Guj Pipavav Port 171.55 -6.89
Mahindra Finance 254.15 -4.97
Metalyst Forg. 53.65 -4.96
Goldline Intl. 195.30 -4.96
> More on BSE Gainers
Company Price() Chg(%)
Ess Dee Alumin. 279.75 -8.10
Guj Pipavav Port 170.60 -7.48
Mahindra Finance 252.65 -6.15
Shrenuj & Co. 49.65 -4.98
Castex Tech 60.65 -4.94
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price