India's Tata Group launches takeover bid for London-based Orient-Express hotels

Last Updated: Sat, Oct 20, 2012 04:50 hrs

India's Tata group subsidiary, Indian Hotels Company (IHC), has reportedly launched a bid to take over the London- based luxury hotels chain Orient-Express in a bid to expand its business overseas.

IHC has offered 12.63 dollars per share to buy the 93 percent of the shares in the company.

The amount adds a 40 percent premium over the company's earlier closing share price.

According to the BBC, IHC said it launched a bid after Orient-Express indicated it would 'not be interested' in an equity investment.

"We believe this offer is in the best interests of Orient-Express Hotels and its shareholders, and deserves careful consideration by your Board of Directors," IHC said in a letter to Orient-Express, a copy of which was filed with the US Securities and Exchange Commission.

"We believe this premium cash offer represents a compelling value proposition for the company shareholders, especially in light of the current fragile state of the global economy and the lack of clarity about the prospects for recovery," the firm added.

According to the report, IHC said that if acquired, the new Orient-Express Hotels will continue to remain an independent company. (ANI)

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