Princess/Carnival Update

January 21, 2002

P&O Princess has sent Carnival back to the drawing board. Last week, Carnival Corp. upped its acquisition bid for P&O Princess from $4.6 to $5 billion. Despite reports of fall-outs within the P&O shareholder ranks over whether or not the new offer was attractive enough to welcome Carnival to the proverbial table, it now appears that the general consensus is the bid’s not quite good enough to merit a formal sit-down.
Carnival has said it will respond within 24 hours. As usual -- stay tuned.