Indian Hotels scrip slides 5% after bid for Orient Express

October 19, 2012   ·   0 Comments

MUMBAI

The Indian Hotels scrip slid over 5 per cent today following the Tata group firm making a $1.86-billion offer to acquire the US-based luxury hotels operator Orient Express.

In a second attempt to take control of Orient Express, Indian Hotels yesterday made a $1.86-billion offer to acquire the international luxury hotels operator.

Indian Hotels, which holds about 7 per cent in Orient Express Hotels, termed the all-cash offer as “compelling”.

Reacting to the development, the stock of the company opened on a weak note at Rs 69.90. Then, it tumbled 5.55 per cent to touch an intra-day low of Rs 66.30 on the BSE. It, however, regained some lost ground and was quoting at Rs 66.75, down 4.91 per cent at 1103 hours on BSE.

A similar movement was witnessed on the NSE as well, where the stock opened at Rs 70.05 and then fell 5.54 per cent to an early low of Rs 66.40. It was later trading at Rs 66.80, down 4.98 per cent at 1102 hrs.

The all-cash offer of $12.63 per share is at a 40 per cent premium to Orient Express’ closing stock price traded on the NYSE on October 17. The offer by Indian Hotels along with Charme II Funds includes the hotels operator’s debt burden.

Once the transaction materialises, the deal would create one of the world’s major portfolios of luxury hotels and resorts. Indian Hotels operates the iconic Taj properties in India and abroad.

By Web Editor

Tags: BSE, cent, Indian Hotels, NYSE, Orient Express, Rs