Officials at both DLF and Orient-Express Hotels (OEH), which has been in news for months after rejecting an alliance offer from Indian conglomerate Tatas, remained non-committal on any such development.
OEH CEO Paul White said through a spokesperson in London that he had no comments on the matter. A spokesperson for DLF also said that they would not comment on speculations.
However, the share price of DLF, which is currently trading at a huge discount to its all-time high of Rs 1,225 scaled on January 15, zoomed after reports about a possible approach to acquire OEH trickled in.
The shares closed 1.48 per cent higher at Rs 684.35 at the Bombay Stock Exchange, after peaking at Rs 692 earlier in the day. The stock had slipped below Rs 600-level earlier this month when it closed at Rs 598 on April 11.
The marketmen said the reports could help push the share price of New York Stock Echange (NYSE)-listed OEH as well in the US. The share price of OEH has also taken a beating in the recent past and closed with a loss of over 3 per cent at $41.35 yesterday.
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OEH stock has fallen by more than one-fourth in less than two months. The company has a current market valuation of about $2.5 billion, but according to industry experts any possible buyout, if at all it happens, could be at a much higher price because of the company's strong brand value.
However, an investment banker close to a large hedge fund holding stake in OEH said it was unlikely that any of the existing shareholders would look to exit the company under the current market conditions.