| This comes exactly a month after the Tata group's Indian Hotels Company bought 10 per cent and expressed interest in striking a deal which was turned down by Orient-Express. |
| Dubai Holding expressed its interest to launch a counter-offer in a filing with the Securities and Exchange Commission last week. Dubai Holding said it has began acquiring the shares of Orient Express in order to prevent the other shareholder (Indian Hotels Company) from acquiring a significant stake in the company. |
| Industry sources said the Dubai group's move would cause further problems for Indian Hotels which has been trying to strike a strategic alliance with Orient-Express. |
| Dubai Holding's exact shareholding in Orient-Express could not be confirmed. A source said it had 9.2 per cent stake till recently, which might have increased after acquisition of another 5 per cent from HSBC. |
| According to sources, the Tata group still hopes to pursue a possible business alliance. It has not diluted its stake in Orient-Express although its offer for an alliance was rejected. |
| Orient-Express has two classes of stock with differential voting rights. The structure enables it to oppose any hostile takeover. |
| Dubai Holding said in the filing that it had been on lookout for a joint strategy and possible transaction with Orient-Express. It has also made an offer to buy all of Orient-Express's outstanding shares for $60 per share in cash. Orient-Express refused the offer. |
| IHCL's wholly-owned subsidiary, Samsara Properties, had bought a 10 per cent stake from the open markets for Rs 850 crore as "a reflection of its deep commitment to the possibility of an association with Orient-Express Hotels". |
| Samsara borrowed Rs 1,200 crore from a Tata group company for the purchase. |
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