P&O Princess Cruises says there is still time for US rival Carnival to raise its bid for the group and lure Princess away from an agreed $7 billion merger with Royal Caribbean.
P&O Princess added in a statement today that while it was still committed to the agreed merger with Royal Caribbean Cruises, it would now hold a shareholder meeting on the deal on February 14th - several weeks later than expected.
P&O rejected a £3.2 billion offer by Carnival during the weekend, setting up a bidding war. Cruise lines are seeking cost-cutting alliances to counter a slump in passenger numbers that has accelerated since September 11th.
Carnival's offer of 200p cash and 0.1361 Carnival shares for each P&O Princess share values Princess at about £1 billion more than the Caribbean merger.
Shares in P&O Princess climbed 2.75 per cent in early trading today to 373 1/2 pence.
Royal Caribbean shares have fallen steadily this week following news of Carnival's offer, and the stock closed down 1.2 per cent at $14.25 in New York yesterday.
Carnival shares closed up 1.5 percent at $27.22.