The Hindu Business Line : No fresh communication from Tatas: Orient-Express

LONDON: Orient-Express Holdings, owners of luxury hotels and trains, has said there has been no fresh communication from India's Tata Group for a strategic alliance between them.

During a conference call on Thursday to discuss its first quarter results, Mr Paul White, CEO, Orient-Express Hotels said, "We had not had any further conversations" with Tata Group's Indian Hotels for a strategic tie-up.

Mr White was replying to a question whether the company had any discussions with Indian Hotels on the subject of a strategic alliance.

There have been speculations about a take-over attempt by Tata group's Indian Hotels ever since it disclosed late last year a 10.5 per cent shareholding in Orient-Express.

Meanwhile, the firm's net loss widened to $4.3 million in the January-March quarter of 2008, from $3.7 million in the same period a year ago. There are also rumours of DLF mulling a possible acquisition of OEH.

Earlier, the OEH management had rebuffed Tatas' demand for a business alliance, saying any association with a predominantly Indian brand would dilute its premium brand value.

This evoked a strong reaction from Tatas, which sought a public apology for using libelous remarks in the refusal. Shares of the company closed at $44.86, down 5.48 per cent on the New York Stock Exchange on Thursday. - PTI

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