Tata Group-owned Indian Hotels Co (IHCL) has placed an unsolicited US$ 1.42 billion bid for New York Stock Exchange-listed luxury hotels group Orient-Express Hotels.

IHCL confirmed on Thursday that it had offered US$ 12.63 per Orient-Express share. The bid has been placed for the remaining 93.1 per cent stake in the Orient-Express Hotels that it doesn't current own. The all-cash offer valued the US hospitality group at $1.86 billion, and represents a 40 per cent premium to the group's closing stock price on Wednesday.

Speaking about the offer, IHCL Vice Chairman R K Krishna Kumar said, "We believe this premium all-cash offer represents a compelling and immediate value proposition for Orient-Express' shareholders."

It is IHCL's second attempt to acquire Orient-Express Hotels. It had made a similar attempt in 2007 also, but the board of the Orient-Express Hotels had turned down that offer.

The Orient-Express stock, which has shed 78 per cent since September 2007, jumped 41.35 per cent intra-day to $12.75 and was trading at around 31 per cent at $11.80 at 9.30 pm IST after the announcement of the offer.

A spokesperson for IHCL said that Orient-Express would remain an autonomous and independent company, despite the potential takeover.

IHCL currently holds nearly 7 per cent stake in Orient-Express Hotels. Bank of America Merrill Lynch is advising IHCL on the deal.