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Sahara India makes $600 mln offer to acquire Plaza Hotel in New York

April 10, 2012 - New Delhi

Sahara India Pariwar Ltd has reportedly made an unsolicited 600 million dollars offer to acquire the landmark Plaza Hotel in New York.

But the offer made by the Indian conglomerate 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.

According to The Wall Street Journal, El Ad is currently examining the proposal, but has yet to discuss the offer at length with Kingdom Holding.

Sahara has offered 400 million dollars for 230 rooms in Plaza, amounting to 1.7 million dollars a room, a lofty sum even for Manhattan.

The deal also offers a sum of 200 million dollars for the so-called retail portion of the hotel, which includes 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, the report said.

The report added that if the deal got finalized Sahara would terminate the management, which has managed the hotel since 1995, in favour of Sahara itself managing the property.


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