UPDATE: Orient-Express Hotels (OEH) Surges as Indian Hotels Seeks to Buy Remaining Shares for $12.63

October 18, 2012 10:29 AM EDT
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(Updated - October 18, 2012 10:41 AM EDT)

(Updated - October 18, 2012 10:31 AM EDT)

Orient-Express Hotels Ltd. (NYSE: OEH) is surging higher mid-day following news that 6.9% shareholder Indian Hotels seeks to acquire the rest of the company.

"At a meeting of the Board of Directors of the Company held at Mumbai this evening, the Directors have "in principle", subject to the necessary regulatory approvals, authorized the Company to make an offer to the Board of Directors of Orient-Express Hotels Limited seeking their consent for IHCL acquiring the balance outstanding 93.1% Class A common Shares of Orient-Express Hotels Limited i.e. 100%. The Company proposes to finance the acquisition of such shares and related transaction costs through a combination of debt and equity. Total funds required to consummate the transaction is in place. The Company also has an agreement with Montezemolo & Partners an important Italian company directly owned by the Montezemolo family who is the Manager of Charme II Fund, which will be a minority shareholder in the Special Purpose Vehicle set up for the transaction."

In a 13D filing, Indian Hotels said the offer price is $12.63 per share.

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