Sahara makes $600 mn bid for NY Plaza: WSJ | business | Hindustan Times
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Sahara makes $600 mn bid for NY Plaza: WSJ

business Updated: Apr 10, 2012 13:53 IST

Indian conglomerate Sahara India Pariwar Ltd made an unsolicited $600 million offer to acquire the landmark Plaza Hotel in New York, the Wall Street Journal reported, citing people familiar with the matter.

The deal would need the approval of Israeli-owned El Ad US Holding Inc and their partner in the hotel, Kingdom Holding Co, controlled by Saudi Arabia's Prince Alwaleed bin Talal.

El Ad is examining the proposal, but has yet to discuss the offer at length with Kingdom Holding, the Journal said.

Sahara's offer values the hotel portion of the Plaza, spanning 230 rooms, at $400 million, with the remaining $200 million for the so-called retail portion of the hotel, which encompasses the hotel's banquet hall, fitness center and other common areas wholly owned by El Ad, the US real-estate arm of Israeli entrepreneur Isaac Tshuva, Journal reported.

Sahara's bid also requires the termination of the present Plaza management by Fairmont Hotels and Resorts, which has managed the hotel since 1995, in favor of Sahara itself managing the property.

Sahara India, El Ad and Kingdom Holding officials were not immediately available for comment.