IHCL writes to Orient-Express’ board to alleviate fears about its $1.8bn bid
Indian Hotels Company Ltd (IHTL) has written to Bermuda-based Orient-Express Hotels' board of directors to dispel any misunderstandings about its $1.8 billion unsolicited bid.
In a letter to Orient-Express' board of directors, including chairman J Robert Lovejoy, Indian Hotels Vice Chairman R K Krishna Kumar said that the company has always endeavoured to pursue amiable transactions with counterparties.
To alleviate fears of a hostile takeover, Krishna reiterated that Orient-Express would remain a separate and independent entity, even after acquisition, just as Tata Motors kept Jaguar Land Rover independent after acquisition.
In the letter, Krishna said, "Although the company will be able to avail the benefits of being part of the broader Tata Group, we want to reiterate that Orient-Express Hotels will remain a separate and independent company."
Around a week ago, Tata Group-owned IHCL had placed an unsolicited bid to acquire Orient-Express Hotels for $1.2 billion (Rs 6,300 crore).
Orient-Express' seven-member board will play a decisive role in IHCL's bid to finalize the deal. In the west, the boards give its opinion regarding a merger or acquisition whether the deal will be beneficial to shareholders or not.