NCL In Talks With Singapore's Star Cruises

Friday, December 10, 1999
One week after spurning an offer from industry leader Carnival Cruise Lines, Norwegian cruise ships operator NCL Holding ASA is in talks with Singapore's Star Cruises Plc. Miami-based Norwegian Cruise Line, the world's fourth-largest cruise operator, had rejected Carnival's 30 Norwegian crowns-a-share offer ($3.77) as too low and hinted rival takeover bids might surface. But NCL said it was not clear whether Star, the leading Asia-Pacific cruise line, would prove its savior. "Further information will be given if NCL receives a concrete bid from Star Cruises," NCL said. Carnival immediately challenged Star to come up with a better offer than its own made last week, which valued NCL at $884 million, or $1.7 billion with assumption of debt. Carnival spokesman Tim Gallagher said that the company was ready to sell its 4.3 million shares in NCL to any buyer willing to top its own offer, echoing similar comments made by Chairman Micky Arison. "It appears that what NCL is saying is that there is not an offer on the table," said Gallagher. "We do have an offer on the table, and, if someone comes along with a better offer, we'll tender our shares." However, Carnival shares were down $1-3/16 to $49-3/8 in U.S. trading, while American Depositary Receipts of NCL were up $1 at a year-high of $17-7/16, and NCL shares in Oslo closed at 34.90 crowns. Analysts' reaction was mixed, although most said that a marriage with Carnival would reap larger costs synergies. Star would gain the best advantages by immediately getting a strong foothold in the North American market, they said. "Star is an Asian operator and has a different profile of customers. You could not generate the same sort of cost synergies as would be available with Carnival," said one Oslo-based analyst. NCL said last week that in addition to Carnival, the world's largest cruise operator, two other cruise companies were "very interested" in it. It gave no names. Britain's P&O and Royal Caribbean Cruises Ltd. have said they did not plan a counter bid. Star Cruises says it will have a fleet of 12 vessels by 2005 and is among the world's top five operators. NCL Chairman Kristian Siem said last week that it would be a waste of time even to discuss the bid with Carnival. Carnival has said that it has no plans to raise the bid. Brokerage Pareto Fonds in Oslo said NCL shares could reach 75 to 100 crowns in the next two to three years, based on a strong recovery in earnings resulting from increased capacity and a pricing in line with peer operators. Analyst Per Didrik Leivdal said Carnival's offer was far too low. He said a link with NCL had much higher strategic value to Star than for Carnival. "Star can pay more. For Star it is an interesting strategic move. It's probably the last entry point into the North American market," Leivdal said.
Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Duffy Named President of Carnival Cruise

Carnival Corporation & plc., the world’s largest travel and leisure company, today announced that Christine Duffy has been named president of Carnival Cruise Line,

Fincantieri Wins Carnival Cruise Ship Order

Fincantieri SpA has been awarded an order by Carnival Corporation & plc for the construction of two new cruise ships for Carnival Cruise Line and Holland America Line.

Tanker Trends

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Benghazi Port Still Closed, Imports Rerouted

The commercial port in Libya's second city, Benghazi, remains closed due to fighting between pro-government and Islamist forces, forcing wheat imports to make a detour via Tobruk harbour,

EGAS Tenders for as many as 48 LNG Cargoes

Egypt's state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said. A senior

 
 
Maritime Contracts Maritime Standards Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1261 sec (8 req/sec)