Takeover talk at Orient-Express Hotels is on the rise again, and India's Tata Group is now in the spotlight, with the latest media reports saying the company may up its stake by buying shares.

The Tatas will buy shares from the open market if the price is right, The Economic Times quoted anonymous sources as saying. But it does not intend to launch a hostile takeover bid.

The Tata Group already holds 11.5% in Orient-Express Hotels, and as speculation increases about its intentions to consolidate control, others that have substantial holdings in the firm are upping their stakes, possibly betting that when a new buyer comes in, they will get handsome returns for their shares.

In the past few days, hedge funds including D. E. Shaw Valence and SAC Capital Partners have disclosed having upped their stakes in the New York Stock Exchange-listed Orient-Express Hotels to more than 5%. D. E. Shaw also raised questions about the governance structure and voting rights in the company that it said could be hampering potential investors interested in proposing a merger or takeover.

In December, Orient-Express's Chief Executive PaulWhitePaul White vocally rejected the Tata Group’s offer of a possible alliance, saying there was a mismatch between its brands and those of the Tata family, namely, its Indian Hotels company. (See: "Spurned Tata Demands Apology From U.S. Company").

The Tatas have a history of successful global acquisitions, most notably that of Anglo-Dutch steelmaker Corus last year, and they are likely close to a buyout of Ford's Jaguar and Land Rover brands this year. The group's management style leans toward friendly acquisitions, and they usually stay away from controversial buys, so the Orient-Express story is out of character, commented a New Delhi-based hospitality industry analyst who declined to be named. "But Orient remains attractive because it is one of the few profitable European chains. And despite the occasional road bumps, Indian companies will keep on acquiring assets outside their country as they try and push growth."

For the December quarter, though, Orient-Express Hotels reported a loss of $4.9 million, or 12 cents per share, compared with a profit of $6.7 million, or 16 cents per share, in the identical quarter the previous year. The losses mainly resulted from an impairment charge related to a strategic review of a resort on Bora Bora.

"We believe investors remain less focused on the quarterly results and the go-forward strategy than on the future ownership of the company, which has been the primary driver of the shares in our view. Thus, we believe the earnings announcement is neutral for the shares," analysts at Oppenheimer & Co. said in a note to clients. The brokerage termed Orient-Express’s fourth-quarter performance as "quite strong."

Amid rising speculation about a possible sale at the luxury hotels chain, Oppenheimer analysts said: "Due to the ownership structure of the company, where the board essentially controls the voting power of the shareholders, we maintain our view that the company does not appear interested in soliciting offers, while the dual class share structure prevents investors [from] impacting the decision."

Orient-Express Hotels' portfolio includes more than 50 properties in 25 countries, including luxury trains like the Venice Simplon-Orient-Express, safari packages and restaurants.