Indian Hotels Abandons $1.2 billion Bid for Orient-Express
November 9, 2013 2:46 PM EST
Indian Hotels Company (IHC)(IHTL.NS), owner of the Taj Mahal chain of hotels and resorts, will not pursue its $1.2 billion bid to acquire U.S. luxury hotels group Orient-Express Hotels(OEH.N), it said on Friday, ending a year-long chase.
The company said the board had decided not to pursue the offer after taking into account all factors, including the current economic environment and other opportunities and priorities.
In October last year Indian Hotels, controlled by the $100 billion salt-to-steel Tata Group, made an unsolicited bid to acquire Orient-Express, in which it has a 7 percent holding.
Orient-Express, which owns the Hotel Cipriani in Venice and the '21' Club in New York, rejected the bid a month later, saying it undervalued the business.
Indian Hotels' quarterly net loss widened to 3 billion rupees for the three months to September 30, compared with a net loss of 63.6 million rupees in the same period last year, after writing down the value of its investments in overseas assets including Orient-Express.
Net sales rose 3 percent to 3.9 billion rupees.
After foregoing the Orient-Express bid, Indian Hotels said it has reduced the value of its holding in Taj International Hotels (HK), the holding company for its international entities including Orient-Express, by 2.87 billion rupees.
Indian Hotels' investors had greeted its unexpected and unsolicited bid for Orient-Express with wariness because of concerns that it would add to the company's debt load.
The Indian company has bought several overseas properties, including the Pierre in New York, but they have not tended to perform as well as its domestic operations, which include its flagship Taj Mahal Palace in Mumbai.
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- U.S. Flights to Israel Now Lifted, Flights To and From Tel Aviv Resume – FAA
- Reserve Bank of New Zealand Raises Interest Rates Due to 'Unsustainable' Kiwi
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales