The Hindu Business Line : Orient-Express share price unaffected

The shares of US-based Orient-Express Hotels in which the Taj group picked up 10 per cent stake opened strongly at $53.99 on New York Stock Exchange on Wednesday as opposed to previous day’s close of $53.19.

The company’s share movement assumes significance even as the management denying any plans to form a strategic alliance with the Taj group. On Monday, Indian Hotels Company, operators of Taj Hotels Resorts & Palaces said in a statement that the group is looking forward to form an alliance with Orient.As a commitment to this alliance, IHCL said that through its wholly-owned subsidiary Samsara Properties Ltd, it has acquired approximately 10 per cent stake in Orient-Express Hotels Ltd at a total investment of $211.28 million (around Rs 850 crore).

However, reacting to IHCL’s announcement, Orient in a letter to NYSE dated Tuesday stated that the company “does not wish to pursue the proposals for discussion contained in their (IHCL) letter.” It added, “Following a meeting of the Board of Directors of Orient-Express Hotels, President and Chief Executive Officer Mr Paul White confirmed that Orient-Express Hotel’s management has not entered into strategic discussions with IHCL, the Taj hotels group or any of their affiliates.”

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