PIH chairman Atul Kirloskar said that this resolution authorised the board to negotiate with potential buyers for sale of the undertaking. Kirloskar dismissed the speculations of a sell-out to the Indian Hotels group as `preconceived notions' saying that there have been `no offers.'

He however, admitted that ``there have been expressions of interest asking us if we have an interest''.

``But there have been no offers,'' he reiterated. The decision of a sale will be taken by the board if it is beneficial for the shareholders, he said. He was quick to point out that the fact that there have been offers did not gaurantee a sale. A demand poll ensued at the four-hour long meeting.

Kirloskar explained that in the post liberalisation era, one had to decide on which business to compete. Hotel Blue Diamond was built because there was no good hotel in the city in S L Kirloskar's time. ``We do not have the same strength as other chains and felt that this will be an opportune time to move out,'' he said.

PIH which owns Hotel Blue Diamond found itself in the midst of a controversy over reports of its imminent sale. It also has two other properties - Hotel Peal in Kolhapur and City Inn at Baramati. At the board meeting held in January this year, the board had decided to explore the possibility of the sale of the whole or substantial undertaking of the company in view of increasing competition and the marginal profitability the company has had for over three decades.