A day after Orient Express rejected the takeover offer from Tata Group’s Indian Hotels Company Ltd (IHCL) and its partners, the Tatas said they would review the development and consider their options. They may increase the offer price, said analysts.
“Indian Hotels Company Ltd and Montezemolo & Partners on behalf of Charme II Fund today acknowledged the recent announcement by OEH (of rejecting its takeover bid), and are reviewing the position taken by the OEH board and are considering their options with respect to their offer to acquire Orient-Express,” IHCL said in a statement. On Thursday, Orient Express rejected the “unsolicited” $ 1.86-billion acquisition bid by the Tatas at the rate of $12.63 per share, saying it undervalued the luxury hotel chain.
“After thorough consideration, and in consultation with advisors, our board has unanimously concluded that your proposal significantly undervalues Orient-Express and its future prospects,” Orient Express chairman J Robert Lovejoy said in a letter to IHCL.
Following the rejection, IHCL’s shares gained over 3 per cent but closed with a gain of 0.24 per cent at Rs. 63.65 on the BSE.