Indian Hotels up 3% as Orient rejects buyout offer
Mumbai: Shares of Tata Group firm Indian Hotels on Friday rose about 3 percent after luxury hotels chain Orient Express rejected its USD 1.86 billion buyout offer.
Paring initial losses, Indian Hotels stock bounced back and moved up 2.67 percent to Rs 65.20 on the BSE on a day when the BSE benchmark index Sensex is trading almost flat.
At NSE, the scrip climbed 2.92 percent to Rs 65.15.
"The buyout offer rejection is positive for Indian Hotels as investors were earlier worried that the acquisition would worsen the company's debt profile and strain its balance sheet," said Paras Bothra, Vice President Research, Ashika Stock Broking.
Orient Express yesterday rejected the "unsolicited" USD 1.86 billion buyout offer from Indian Hotels, saying the bid significantly undervalues the company.
Indian Hotels had offered USD 12.63 per share in cash to acquire all the outstanding shares of Orient Express. The USD 1.86 billion offer was made in October. This was the second takeover attempt by Indian Hotels, which holds about 7 percent in Orient Express.
In the broader market, the BSE 30-stock index, Sensex, was trading at 18,834.06, down 12.20 points at 1120 hrs.