NORWEGIANCruise Line has rejected a $1.7bn takeover bid by cruise giant Carnival Corporation as undervalued.
Carnival made an unsolicited offer to NCL shareholders of $3.42 per share, which it claims is 40% higher than the average price of a share over the past 30 days.
But NCL’s board of directors issued a statement saying the offer was ‘inadequate relative to the intrinsic value of the company’.
Carnival is currently the biggest cruise operator in the world – in addition to operating Carnival Cruise Lines, it owns Cunard Line, Seabourn Line, Windstar Cruises, Holland America Line and Costa Cruises. It also has a large stake in Airtours.
Carnival chairman Micky Arison, whose family co-founded NCL, said: “The company stands to achieve greater success under the Carnival Corporation umbrella, which will provide NCL with economies of scale, greater access to capital, marketing and operating expertise and stronger credibility in the leisure and vacation industry.”
Carnival’s offer to shareholders expires on December 22.
NCLoperates seven ships in its fleet and also owns the two-ship Orient Lines brand.