Indian Hotels scrip slid over 5 per cent on Friday following the Tata group firm making $1.86 billion offer to acquire the US-based luxury hotels operator Orient Express.
In a second attempt to take control of Orient Express, Indian Hotels on Thursday made $1.86 billion offer to acquire the international luxury hotels operator.
Indian Hotels, which holds about 7 per cent in Orient Express Hotels, termed the all-cash offer as "compelling".
Reacting to the development, stock of the company opened on a weak note at Rs 69.90. Then, it tumbled 5.55 per cent to touch an intra-day low of Rs 66.30 on the BSE. It however, regained some lost ground and was quoting at Rs 66.75, down 4.91 per cent at 1103 hours on Bombay Stock Exchange.
A similar movement was witnessed on the National Stock Exchange as well, where the stock opened at Rs 70.05 and then fell 5.54 per cent to an early low of Rs 66.40. It was later trading at Rs 66.80, down 4.98 per cent at 1102 hrs.
The all-cash offer of $12.63 per share is at a 40 per cent premium to Orient-Express' closing stock price traded on NYSE on October 17. The offer by Indian Hotels along with Charme II Funds includes the hotels operator's debt burden.
Once the transaction materialises, the deal would create one of the world's major portfolios of luxury hotels and resorts. Indian Hotels operates the iconic Taj properties in India and abroad.