Indian Hotels Company Ltd (IHCL) is no longer will not further pursue its takeover bid for Bermuda-based Orient-Express Hotels, Tata Group confirmed on Friday.

IHCL, the operator of widely renowned Taj Mahal hotels, had offered to acquire the remaining 93.1 per cent stake in luxury hospitality chain Orient-Express Hotels at a 40 per cent premium to the then market price.

The Indian hospitality company already owns 6.9 per cent stake in Orient-Express Hotels. It had originally purchased a 10 per cent stake in Orient-Express for around $211 million in 2007, but it later slashed its stake down to 6.9 per cent.

IHCL announced its decision to scrap its $1.2-billion bid for Orient-Express, saying poor economic environment, other available opportunities and changed priorities made the bid unattractive.

Earlier, in November last year, Orient-Express turned down the Indian company's offer, saying the proposal was deeply unappealing from a financial point of view and that it was better off as a standalone company.

IHCL suffered a wider net loss of Rs 300 crore in the July-September quarter of current financial year, as against a net loss of Rs 6.36 crore in the corresponding three-month last year.