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Carnival bids $1.7B for NCL
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December 1, 1999: 6:26 p.m. ET
Unsolicited cash tender offer would merge No. 1 and No. 3 cruise lines
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NEW YORK (CNNfn) - Carnival Corp., the world’s largest cruise-ship operator, unveiled Wednesday an unsolicited $1.7 billion cash tender offer for NCL Holding ASA, owner of rival Norwegian Cruise Line.
Carnival said it’s offering 30 Norwegian kroner, or $3.724, per Oslo-traded share for NCL -- about a 40-percent premium on the stock’s average trading price during the last month. Those shares closed up 2.2 kroner to 24.90 in Oslo trading Wednesday.
A spokesperson for NCL, the third-largest cruise operator, could not be reached in Norway or at its U.S. office Wednesday.
Carnival Chairman and Chief Executive Officer Micky Arison, said: "NCL ... stands to achieve greater success under the Carnival Corp. 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."
A Carnival spokeswoman said that Arison, Vice Chairman Howard Frank and Kenneth Dubbin, its corporate development chief, were en route to Oslo to discuss their bid with NCL executives.
American depositary receipts of NCL (NRW) jumped in late New York Stock Exchange trading Wednesday to close up 3-5/16 at 14-1/2, for a gain of 28 percent. Shares of Carnival (CCL) rose 3/4 to close at 44-7/8.
Carnival said the deal would not hurt its earnings next year and would increase its profits starting in 2001. Its tender offer expires on Dec. 22. Any deal would face a U.S. antitrust review, which could be a stiff one because Carnival is already responsible for about one-third of the world’s cruise ship traffic. 
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