CARNIVAL Corporation has re-entered the battle to acquire Norwegian Cruise Line and is attempting to outbid rival Star Cruises.
The US cruise giant has told NCL’s board that it is prepared to pay 40 Norwegian kroners, around £3.04p per share, on condition that it delivers a controlling interest in the company.
Carnival was considered out of the running after the failure of its bid of 30 kroners (£2.28p) per share, which valued NCL at just over £1bn.
After its bid was rejected by the NCL board, Star emerged with an offer of 35 kroners, or approximately £2.66p per share (Travel Weekly December 6 and January 10).
At the time, Carnival chairman and chief executive officer Micky Arison said: “Prices in excess of 30 kroners for NCL’s shares would not create value for Carnival’s shareholders.”
NCL’s board has recommended its shareholders reject Star’s offer after Carnival’s renewed bid. However, it had not formally endorsed Carnival’s latest offer as Travel Weekly went to press.
Star currently claims to own 47.9% of NCL’s shares, and it has reportedly won the support of Orient Lines founder Gerry Herrod, who owns a further 2.6%.
Star will announce its intention at an extraordinary general meeting scheduled for Friday to sack NCL’s existing board and will propose a list of replacement candidates. These include Star president and chief executive officer Colin Au, Star chairman Lim Kok Thay and former Princess Cruises executive Colin Veitch.
Veitch has been recruited by Star to replace NCL’s current president and chief executive officer, Geir Aune, if the takeover is completed (Travel Weekly January 24).
n Star has reported a 130% rise in net profit to £56.2m in 1999. Revenue rose by 46% to £238.7m.