Carnival fires a broadside

AMERICAN CRUISE giant Carnival has pledged to bypass the board of P&O Princess and write direct to shareholders, outlining its planned bid. It wants investors to adjourn the 14 February extraordinary general meeting, called to approve a merger with rival Royal Caribbean.

Carnival boss Micky Arison is angry that Princess has rejected his second offer, worth £3.5bn or £5 a share. But a knockout offer could still sink the Princess board's resistance. The UK group insists a tie-up with Royal runs less risk of regulatory problems.

One fund manager said: 'This is getting very acrimonious. It makes it difficult for shareholders.' Nigel Parsons, at WestLB Panmure, said: 'P&O Princess is right to reject Carnival. It has not offered enough and is too conditional.'

Carnival's offer depends on Princess scrapping a joint venture with Royal without penalties. Royal chief executive Richard Fain said Carnival was attempting to frustrate the merger with Princess.

Princess chief executive Peter Ratcliffe said: 'If we adjourn the egm, we risk losing the deal with Royal.'