A counter bid may be in the offing to the Indian Hotel's $1.8-billion joint offer for Orient-Express.

British property billionaires David and Simon Reuben, who own 6.22 per cent of Orient-Express, are mulling topping the Indian Hotels unsolicited bid, according to sources close to the development who are awaiting a response from the Orient-Express board .

To the Indian Hotels $12.63 per share bid to purchase all the outstanding shares of Orient-Express (Class A common stock), the Reuben brothers are apparently considering a $16 per share offer.

In the Forbes 2012 billionaire list, the Reuben Brothers were ranked second wealthiest in the UK with an estimated fortune of £6 billion.

US-based investment management group Cohen and Steers, the largest shareholder in Orient-Express Hotels with 13.2 per cent stake, are also said to be in talks with the Reuben Brothers on the hostile bid.

The Bermuda-based company Orient-Express was founded in 1977 by James Sherwood, who is personally said to be backing the Tata-controlled Indian Hotels bid.

Orient-Express is listed on the New York Stock Exchange and has several luxury hotels, including the Cipriani Hotel in Venice and Splendido in Portofino, Italy.

At an Orient-Express' second quarter earnings call on August 1, 2012, revenue was reported down two per cent to $163.8 million as compared with the same quarter of last year and adjusted EBITDA for the second quarter was $41.5 million or three per cent below last year.

Founded in 1986, Cohen and Steers are focused on global real estate securities, globally listed infrastructure and preferred securities.

Assets under management as of September 30 were $44.9 billion, which included $24.6 billion in institutional accounts, $12.5 billion in open-end mutual funds and $7.8 billion in closed-end mutual funds.

Incidentally, Cohen and Steers are to release third quarter 2012 financial results on October 24.

> amritanair.ghaswalla@thehindu.co.in

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