The Tatas have sought an apology from Orient-Express Hotels for its "libellous" remark that sought to show the Indian conglomerate's hospitality business in poor light.

In a strongly worded letter to OEH's CEO Paul White, Indian Hotels vice-chairman R K Krishna Kumar said, "The purpose of this letter is not to pursue a dialogue directly with you but to set the record straight on our intentions in approaching your company."

The Indian Hotels executive added that given Taj Hotels' reputation as one of the world's most trusted brands in hospitality, he felt compelled to correct the misinformation that has been circulating in the news media as a result of the letter written by White.

White in a letter to Indian Hotels had said that tying up with the "predominantly Indian" hospitality firm will erode the US hospitality chain's brand image.

"We ask OEH to publish a formal apology to Taj Hotels using the same channels that OEH used to publicise its letter to Taj Hotels, including posting the apology on its global web site," Kumar said.

"Taj Hotels is a proud Indian company, and it will persevere with its global expansion strategy. Indian companies will continue to play a meaningful role in the ongoing global economic integration... Enterprises and individuals must... adapt to these fundamental economic changes... those with a fossilised frame of mind risk being marginalised."

Queries sent to White's office by PTI remained unanswered and officials at his London office said he had gone on leave and would return only by January 2. White's letter had triggered strong reactions from the Indian industry and government officials, who cautioned against any move to sabotage Indian companies' global expansion plans.

Kumar's letter, dated December 19, a copy of which was filed with the market regulator Securities Exchange Commission in the US where OEH is listed, came in response to a letter written by White on December 10, in which he had rejected an alliance proposal from Tatas.

"Having received and carefully read your letter dated December 10, my initial reaction was one of surprise. I could only infer from the language and tone of the letter, which was highly misinformed and unduly aggressive, that it could not have been written by a senior member of OEH's management team and supported by the company's board," Kumar said.

Kumar further wrote, "I thought perhaps it was written on your behalf by an over-zealous adviser and released before it was properly vetted by your office. However, as time passed and your team commented publicly about the letter and its contents, it became clear to me that this letter was indeed written with your full consent."

"This was extremely distressing to me, as Indian Hotels found the letter to be pejorative, inaccurate and libellous," he noted. Kumar said that he had proposed a meeting only to explore the identified opportunities for working together and any "responsible company would have engaged in a conversation with its single largest shareholder."

Taj Hotels acquired a 10 per cent stake in OEH in September and subsequently increased it to 11.5 per cent. 

India slams Orient Express stand against Tatas