Latest Developments in P&O Merger

October 11, 2002

A week after the Federal Trade Commission gave the thumbs-up to Carnival's acquisition bid for P&O Princess -- as well as the proposed merger of P&O Princess and Royal Caribbean -- there have been a few new developments. Indeed, as indicated by P&O Princess Chief Executive Peter Ratcliffe, his board "has finally agreed to meet with us," according to Carnival Spokesman Tim Gallagher. "Meetings are being planned now and should begin shortly."
Carnival has said it will make a formal acquisition offer in December. That
would follow the special P&O Princess board meeting, slated to occur on a (November) date to be determined, to vote on the proposed merger with Royal Caribbean. Analysts are anticipating that vote to fail.
In the meantime, Ratcliffe has said that the P&O Princess board still
recommends the merger with Royal Caribbean over acquisition by Carnival but look for stances to possibly change as new proposals and/or approaches on both sides are expected.