holders to sell to Star and Carnival last week. They also announced the intention to sell their own, undisclosed shareholding in NCL.
Under the terms of their joint-venture agreement, Star will hold a 60% stake in Arrasas, a subsidiary it established to acquire NCL, and Carnival will have a 40% stake.
The companies are also planning to cross-market their cruising product on a global basis, which will give Carnival the chance to gain a foothold in Far East markets and allow Star to increase its representation in the North American and European markets.
As a result of the deal, Carnival dropped its attempt to outbid Star’s 35 Norwegian kroner (£2.66) a share bid for NCL (Travel Weekly January 31). Assuming Star acquires NCL’s remaining shares at its offer of 35 kroner, Carnival will wind up paying between $400m and $450m for its 40% stake.
Meanwhile, Carnival has agreed to back Star’s proposed board, which includes former Princess Cruises executive Colin Veitch.
He was recruited by Star to replace NCL’s president and chief executive officer Geir Aune if the takeover went ahead. (Travel Weekly January 24).
As a minority shareholder, Carnival will be allowed two non-voting observers on the NCL board.
Carnival chairman and chief executive officer Micky Arison said: “We are delighted with this new partnership. We anticipate the tie-up will mark the establishment of a long-term global alliance between Carnival Corporation and Star Cruises.”
See Clipboard, page 107
n NCL’s executive vice-president of marketing and sales, Art Sbarsky, left the company before last Friday’s Oslo meeting. He was replaced by senior vice-president of sales Andy Stuart on a temporary basis.
STARCruises and Carnival Corporation have ditched their rivalry and launched a joint bid to acquire Norwegian Cruise Line.
The new partners were expected to secure the deal and sack NCL’s previous board at an extraordinary general meeting of shareholders in Oslo on Friday.
NCL’s old board gave up its battle to retain control of the company and advised shareholders to sell to Star and Carnival last week. They also announced the intention to sell their own, undisclosed shareholding in NCL.
Under the terms of their joint-venture agreement, Star will hold a 60% stake in Arrasas, a subsidiary it established to acquire NCL, and Carnival will have a 40% stake.
The companies are also planning to cross-market their cruising product on a global basis, which will give Carnival the chance to gain a foothold in Far East markets and allow Star to increase its representation in the North American and European markets.
As a result of the deal, Carnival dropped its attempt to outbid Star’s 35 Norwegian kroner (£2.66) a share bid for NCL (Travel Weekly January 31). Assuming Star acquires NCL’s remaining shares at its offer of 35 kroner, Carnival will wind up paying between $400m and $450m for its 40% stake.
Meanwhile, Carnival has agreed to back Star’s proposed board, which includes former Princess Cruises executive Colin Veitch.
He was recruited by Star to replace NCL’s president and chief executive officer Geir Aune if the takeover went ahead. (Travel Weekly January 24).
As a minority shareholder, Carnival will be allowed two non-voting observers on the NCL board.
Carnival chairman and chief executive officer Micky Arison said: “We are delighted with this new partnership. We anticipate the tie-up will mark the establishment of a long-term global alliance between Carnival Corporation and Star Cruises.”
See Clipboard, page 107
n NCL’s executive vice-president of marketing and sales, Art Sbarsky, left the company before last Friday’s Oslo meeting. He was replaced by senior vice-president of sales Andy Stuart on a temporary basis.
Fleet facts
Carnival Corporation: owns Carnival Cruise Lines; Holland America Line; Windstar Cruises; Cunard; Seabourn; Costa Cruises (50%); Airtours’ Sun Cruise (26%). It has a total of 45 ships, with a further 10 due for delivery by the end of 2003.
Star Cruises: owns nine ships and has four ordered for delivery before the end of 2003.
Norwegian Cruise Line: has eight ships, with one on order for 2001.