Carnival opens door to sell-off

CARNIVAL Cruises has declared that it is prepared to sell some divisions to steer its hostile bid for P&O Princess through the regulators.

The US operator issued a statement at the behest of the Takeover Panel following reports that it was considering a sale of Cunard. Such a disposal may be the demand of European regulators; US watchdogs may force Carnival to sell Alaskan tours specialist Holland American Tours.

Carnival said it had not yet discussed which operations it was prepared to sell, but added that it was prepared to consider 'non-material disposals'. Such a decision would only be made after discussions with the regulators.

Carnival will file its application to the European Commission in the next fortnight, after Princess shareholders have met on Thursday to decide whether to postpone the vote its friendly merger with Royal Caribbean. Analysts' opinion is swinging towards a vote for a delay, allowing shareholders to judge both proposals after the regulatory process. Royal says it may walk away if investors demand a postponement.