The persistent bid speculation surrounding Orient-Express Hotels took a new twist yesterday when Tata Group, of India, acquired a 10 per cent stake in a move seen as a precursor to an eventual takeover.

The Indian Hotels Company, the Tata subsidiary that owns the luxury Taj chain, announced its intention to forge a strategic alliance with Orient-Express, although industry sources said that its preferred route was for an outright takeover.

Indian Hotels said that it had paid $211.3 million (£105 million) for the stake as “a reflection of its deep commitment to the possibility of an association with Orient-Express Hotels”.

Krishna Kumar, vice-chairman of Indian Hotels, did not rule out a bid, but said: “I don’t think we would want to do a takeover bid at this stage. What we have in mind is a mutually beneficial partnership.”

Mr Kumar insisted that he was committed to working in a “friendly and supportive manner” with his rival, although he admitted that he had held cursory discussions over an alliance with James Sherwood, who recently stepped down as chairman of Orient-Express.

Orient-Express has been at the centre of bid speculation for more than six months, with Starwood Capital, Von Essen Hotels, the Reuben brothers and Lord Marland, the former Conservative Party treasurer, tipped as possible suitors for all, or part, of the company.

The purchase of a 10 per cent holding by Indian Hotels is being interpreted as a blocking stake to help to ward off other suitors while the company seeks to negotiate a friendly deal with the Orient-Express board, led by Paul White, its newly appointed chief-executive.

Orient-Express has attracted interest because it owns most of the properties in which it operates. It has 39 hotels on five continents, including the Cipriani, in Venice; the Mount Nelson, in Cape Town; the Copacabana Palace, in Rio de Janeiro; the Observatory, in Sydney; and Charleston Place, Charleston.

It also operates six luxury tourist trains, including the Venice Simplon-Orient-Express, The Eastern & Oriental Express and The Royal Scotsman. It part-owns PeruRail, runs the MV Road to Mandalay in Burma, and Afloat, a French luxury barge operator in France.

Indian Hotels is seen as the jewel in the crown of Tata’s business empire, which ranges from tea to financial services. It has 84 hotels, including the Taj Mahal Palace & Tower, in Bombay, the Taj Lake Palace, in Udaipur, the Pierre, in New York, and the Crowne Plaza, in Westminster, London.

Mr Kumar said he was keen to add further hotels in London, having previously looked at The Lanesborough on Hyde Park Corner.

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