New Delhi: After two unsuccessful attempts,Tata group hospitality chain Indian Hotels Company Ltd (IHCL)today said it would not pursue its USD 1.86 billion bid to
acquire the Bermuda-based Orient Express Hotels.
On 18 October, 2012, the IHCL board had approved making anoffer to the Bermuda-based firm seeking their consent forIHCL, through its wholly-owned subsidiary, to acquire theoutstanding 93.1 per cent Class A Common Shares ofOrient-Express Hotels Ltd.
"...at a meeting of the Board of IHCL held on November 8,2013, after taking into account all factors, the currenteconomic environment as also other opportunities and
priorities for the company, the Board of IHCL has decided notto pursue the afore mentioned transaction...," IHCL said in aBSE filing.
This offer was however rejected by Orient-Express HotelsLtd, saying and even terming it as "unsolicited."
According to IHCL, Orient-Express Hotels had written toits board saying: "It was not an opportune moment for them toconsider a sale of their company."
"...all contracts that were entered into to facilitate thebid, have all since been cancelled. An appropriate amendeddisclosure is being concurrently filed with the SecuritiesExchange Commission, USA," IHCL said.
Indian Hotels, along with Charme II Funds founded by thefamily of Ferrari Chairman Luca Montezemolo, had offered USD12.63 per share in cash to acquire the outstanding 93.1 percent stake in Orient-Express in October last year.
IHCL had even sought a meeting between Orient-ExpressHotels Chairman J Robert Lovejoy with the then Tata groupChairman Ratan Tata along with Ferrari Chairman LucaMontezemolo to discuss the issue.
The takeover bid was the second by Indian Hotels, after anattempt in 2007 to increase its stake failed due to stiffopposition from the then Orient-Hotels management.
Updated Date: Dec 20, 2014 23:52:55 IST