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Published on : Tuesday, November 12, 2013
The Tata Group of India has decided to walk out of the of the nearly $1.2-billion bid for Orient-Express Hotels Limited following a frosty response from the Bermuda-based hospitality company and a slowdown in global demand for luxury travel.
Tata has decided to opt out of the year-old offer for Orient-Express after weighing the economic environment, other opportunities and priorities, the conglomerate said in a filing with the Indian stock exchanges.
It is the second time Tata’s Indian Hotels Company has walked away from pursuing a company that derives its name from the legendary trans-European railroad. It first tried to ally with Bermuda-based Orient-Express in 2007 after buying a 10% stake. In October last year, Indian Hotels made an unsolicited bid to buy Orient−Express Hotels for $12.63 a share, a 40% premium to the $9.02 closing on the day before the announcement. Including debt, the offer was worth about $1.21 billion at the time. Last November, Orient-Express rejected the takeover offer, terming it “deeply unattractive.”