P&O PRINCESS Cruises is set for an anxious
Valentine’s Day as shareholders decide the company’s fate.
February 14 has been set by the UK company for
shareholders to vote on which of Royal Caribbean International or Carnival
Cruise Line is best suited for a mega-merger.
Carnival has until January 18 to make a firm counter
offer to Royal Caribbean’s planned £4.8 billion merger with P&O Princess
Cruises.
If it does, shareholders will be given a choice
between the cruiselines.
The P&O Princess Cruises board will recommend one
of the two rivals to investors at the extraordinary general meeting.
However, they are not compelled to follow the board’s
line and will undoubtedly look for the best value for themselves.
Currently, the cruiseline has rejected Carnival’s
pre-conditional £3.2 billion proposal for a tie-up.
P&O Princess Cruises believes a deal with the world’s
largest cruise company does not offer shareholder value, presents a big
regulatory hurdle and does not represent an irrevocable commitment to an offer.
P&O Princess Cruises chief executive Peter
Ratcliffe said: “Through our combination with Royal Caribbean, our shareholders
will participate in the significant benefits of creating a world-leading
competitor to rival Carnival.”
A major stumbling block to a serious Carnival bid in
the next 10 days is a multi-million dollar termination clause if the planned
P&O Princess Cruises/Royal Caribbean deal then falls through.
A spokeswoman for the UK company confirmed a broken
deal could cost up to half a billion dollars.
However, she added that if a P&O Princess
Cruises/Carnival merger was agreed after January 1 2003, then the clause would
become obsolete.