Carnival set to up P&O Princess bid

SHAREHOLDERS in cruise group P&O Princess are expecting a higher bid from US rival Carnival.

The American operator has been told that if Carnival increases its bid for P&O Princess to more than £5 a share, and drops some of its conditions, investors might be prepared to abandon a planned merger between P&O Princess and Royal Caribbean Cruises. Until now, Carnival has stuck with its original 450p a share offer.

The Americans have been trying to fire up resentment among P&O Princess shareholders about 'poison pill' deals that deter an outsider from intervening in the British group's deal with Royal Caribbean.

Carnival also wants more details on the 'poison pills'.