Orient-Express once again rejects Tata’s takeover offer

Orient-Express once again rejects Tata’s takeover offerOrient-Express Hotels Ltd, the hospitality company whose properties include the likes of the `21' Club in New York and the Hotel Cipriani in Venice, once again turned down the $1.8-billion takeover offer from Indian Hotels Company (IHCL).

Tata Group-owned IHCL had tabled an unsolicited $1.8-billion, or $12.63 a share, takeover offer.

Orient-Express rejected the takeover offer saying it significantly undervalued the company. Robert Lovejoy, chairman of Orient-Express, said the offer was deeply unattractive from a financial perspective.

Lovejoy said in a statement, "The board believes the current macroeconomic environment, conditions in the luxury hotel business and factors unique to Orient-Express would make this a highly disadvantageous time to sell the company."

Stock in Orient-Express closed at $10.55 a share on Thursday, more than 16 per cent below the $12.63 takeover offer price. Following the announcement of the takeover offer, the stock had never reached the offer price level.

This is the second time that Orient-Express Hotels Ltd has rejected IHCL's takeover offer. Previously in 2008 also, IHCL had approached Orient-Express for a strategic alliance, but Orient-Express had rejected that offer.

IHCL already owns nearly 7 per cent stake in Orient-Express Hotels Ltd.