Orient-Express says the bid amount is significantly low and undervalues the assets of the company.
This acquisition may be a precursor to an association with Orient-Express, which owns or part-owns and manages 35 hotels in 25 countries.
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.
US-based Orient Express Hotels has termed the $1.86 billion acquisition offer by Tata group firm Indian Hotels as 'unsolicited' and said it will evaluate the proposal 'carefully and respond' accordingly.
Orient-Express Hotels (OEH), the Bermuda-based owner and operator of luxury hotels, trains, river cruises and restaurants, is open to expanding its global reach, which could include a base in India.
One of the world's most magnificent trains, the Venice Simplon-Orient Express train recreates the original Orient-Express route from Paris to Istanbul once a year with restored cars and luxury suites from the 1920s.
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.
Publicly available data concerning the North American properties of both the hotel chains showed that Orient's average room rates were "meaningfully" below those of Taj's properties. Also, as per the latest financial statements, the trailing 12 month EBITDA margin of Indian Hotels was around 15 per cent higher than that of Oriental, Tatas said.
US-based luxury hotel chain operator Orient Express has brought on its board an Indian-origin restaurant business entrepreneur Harsha V Agadi as an independent director.
Swinging back into profit for the third-quarter with net earnings of about $18 million, luxury hotel chain operator Orient Express on Friday said it is consulting financial and legal advisors on the Tata group's takeover bid and will reply to the offer in due course of time.
Orient-Express has rejected repeated approaches from Tata's Indian Hotels Company, with the issue turning into a public spat in December when the US group said it believed such an alliance would damage the value of its brands.
In an attempt to allay concerns of the US-based hospitality chain, Indian Hotels Co Ltd vice-chairman R K Krishna Kumar, in a letter to Lovejoy, said the Tata group firm would like to engage in a constructive dialogue.
Stung by the US super luxury hotel chain Orient Express' rebuff to be associated with the Tatas-owned Taj Hotels, the Tatas on Thursday shot off a letter to the American company's alleging its posture was "libellous".
It will expand their footprint radically, give them a huge presence at the top end of the market, and reduce their dependence on India.
Dubai Holding, an investment firm of the Dubai government, has threatened to come out with an open offer for Orient-Express Hotels if the Tata group acquires a significant stake in the hotel chain. This comes exactly a month after the Tata group's Indian Hotels Company bought 10 per cent and expressed interest in striking a deal which was turned down by Orient-Express.
Firm's board expected to meet by Thursday to take a call on the offer.
Indian Hotels' ambitious bid to acquire Orient-Express Hotels (OEH) has disappointed the Street. However, this might be a knee-jerk reaction.
Burdened by debt from their rapid expansion in the last few years and the shrinking economy, many hotel chains are now casting around for buyers to sell their assets.
Offer valued at $1.86 bn comes 5 years after Bermuda chain rebuffed Indian Hotels.
They are considering options with respect to the offer to acquire the hotel.
Terming "unproductive" the public dialogue between the Tatas and Bermuda-based Orient-Express, a key investor has asked the US-listed luxury hotel chain to come clear on its corporate governance structure.
Paul White is now the advisor to Indian Hotels in its second attempt to take over the Bermuda-based chain.
In the first quarter of 2008, the company had a net loss of $4.3 million, Orient Express said. The net loss from continuing operations for the period was $13.6 million compared with a net loss of $2.4 million in the first quarter of 2008.
The sudden resignation and almost-immediate announcement of a successor came as a surprise to many.
These 10 spectacular trains promise the most exciting and luxurious journeys through historic places, rocky mountains, forests, deserts and even snowcapped landscapes.
As the economies of emerging markets boom and their biggest conglomerates grow into multinationals, more and more of the new corporate giants in countries ranging from India to China, Russia and Brazil are looking to wring greater profits out of their respective industries.
After a silence of about three months, Orient-Express Hotels, the Bermuda-based luxury hotel chain, has finally broken its silence on the apology sought by Indian Hotels Company Limited.
Tata Group on Wednesday accused the management of a US-listed luxury hotel group of a "fossilised frame of mind" for suggesting the Indian group's hotel chain would be an unsuitable strategic partner, and has demanded a public apology.
The spin-offs from providing some sort of formal training for the hospitality business are huge.
The company divests from properties abroad to focus on its key markets.
The 36 new properties, which will also include expansion across two new countries, will add 5,431 rooms.
In spite of the Orient snub, Tatas are still negotiating with them for the hotel takeover as well as scouting other US cities for luxury hotels.
The 112-year old hotel chain has readied a three-pronged turnaround plan
Tata's Taj Mahal Palace and Tower in Mumbai and Orient's Le Manoir Aux Quat'saisons at Oxfordshire, UK, are among the world's 17 best hotels for having food, according to the 2008 Gold List prepared by British magazine Conde Nast.
Shares of the company opened firm on Thursday at Rs 147.70, up 1.58 per cent from Wednesday's close, then rallied ahead to witness an intra-day high of Rs 153 and as much as 1.05 lakh shares changed hands on the Bombay Stock Exchange. On the National Stock Exchange, the company opened at Rs 145.10, touched a high of Rs 148.50, up 2.10 per cent over its previous close and over 3.02 lakh shares got traded.
Fourteen per cent of the $16 billion invested by Ratan Tata in M&As abroad has been written off by his successor.
Hedge fund DE Shaw Valence has bought 5.7 per cent stake in Orient-Express and is concerned about the public dispute between OEH and Tata Group.
The annual Global Accountability Report considered Tata Group at number 10, among the world's 30 most powerful organisations from the inter-governmental, non-governmental and corporate sector, to be accountable to civil society, affected communities and wider public.
Mistry's strategy appears to be the opposite of the group's stance in the heady days of 2007
Cyrus Mistry undertook quite a few significant initiatives at the Tata Group in the past two years.
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