Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Get news updates:
  
Mobile Downloads
Text 67333
Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this Article


Home > Business > PTI > Report

Orient-Express rebuffs Tatas' proposal again

December 11, 2007 10:53 IST

US listed Orient-Express Hotels, in which Tata group's Indian Hotels has acquired an 11.5 per cent stake for about 247 million dollars, has rejected an offer for a strategic alliance with the Indian conglomerate.

In a reply to Tatas' proposal for a possible association, Orient-Express, which owns New York's prestigious Club 9 Restaurants and a number of luxury hotel brands in the US and other countries, said in a statement that aligning with Tatas' "predominantly domestic Indian hotel chain" would adversely impact the brand value of its premium properties.

Indian Hotels had first disclosed on September 14 a 10 per cent stake acquisition in Orient through open market purchases and had subsequently sought a possible alliance between the two companies.

Despite Orient-Express rejecting its proposal, Tatas have been pursuing for a meeting to discuss a possible deal and again reminded the company of its proposals in November.

Subsequently, Indian Hotels said on Friday that it has acquired a further 1.5 per cent stake -- taking its total stake to 11.5 per cent for about $247 million.

On Friday, Indian Hotels once again reiterated its intention to pursue a possible alliance with proposals for brining its non-Indian hotels under the Orient-Express fold, holding of minority stakes in each other's equity capital and representation on each other's boards.

However, Bermuda-based Orient Express, through a statement issued late last night, once again rejected the proposal.



© Copyright 2007 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.



Advertisement
Advertisement