Princess slow ahead on bid vote

P&O Princess Cruises is hoping to smoke out potential bidder Carnival by delaying the vote on Princess's merger with fellow cruise group Royal Caribbean by three weeks.

Chief executive Peter Ratcliffe said a shareholders' circular concerning the merger would be published by the end of the month but the vote would not take place until 14 February. Ratcliffe said Princess had allowed double the usual time between the circular and the vote to enable Carnival to make a formal bid and ensure it could be considered before shareholders voted on the $7bn (£4.9bn) merger.

Carnival's proposed £3.2bn cash and paper offer values Princess shares at about 450p each. Some of Princess's biggest shareholders said they believe Carnival will need to raise its price to at least 500p and increase its cash component to succeed. The shares rose 13p to 377p in mid-morning trade.

But Carnival said it would not make a formal offer until Princess shareholders reject the merger with Royal, and Carnival's own plans win regulatory clearance from competition regulators, which could take nine months.

'This allows time for Carnival to put a more credible and deliverable transaction and it gives time for Princess shareholders and directors to consider it,' Ratcliffe said. 'We must be certain that we are not jeopardising our merger with Royal, a committed partner, in return for a proposal which turns out to be a spoiling tactic.'