Carnival Floats $1.7-Billion Bid for Norwegian

Carnival Corp., the world’s largest cruise operator, on Wednesday said it will make an unsolicited, all-cash tender offer of $1.7 billion to NCL Holding to add Norwegian Cruise Line to its fleet.

Miami-based Carnival, whose lines include Carnival and Holland America, has said it’s seeking acquisitions to boost its profit and revenue, as most of its ships currently sail full.

On the New York Stock Exchange, NCL shares soared in the final minutes of trading, gaining $4.31 to close at $15.50. The per-share dollar value of Carnival’s bid was not immediately available.

Norwegian Cruise Line, also based in Miami, declined immediate comment.

But Carnival spokesman Tim Gallagher said the company announced its cash tender offer after it approached NCL about a takeover earlier Wednesday and was rebuffed. Gallagher said the approach was made directly to NCL Chairman Kristian Siem, who is a major NCL shareholder.

Top executives of Carnival planned to fly to Oslo today in an attempt to meet with Siem.

Carnival, whose cruise lines include Cunard and Holland America, said the proposed acquisition would provide NCL with economies of scale, greater access to capital and stronger credibility in the leisure and vacation industry.

The proposed acquisition is not expected to reduce Carnival’s earnings per share next year, and it is expected to add to earnings per share in 2001, the company said.

Carnival said it would maintain the NCL name and keep its operations autonomous.

Carnival said its tender offer is scheduled to expire on Dec. 22 at 4 p.m. Oslo time.

Carnival shares rose 75 cents to close at $44.88 on the NYSE.