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Elliott Takes 10%+ Stake in Norwegian Cruise Line, Seeks Board and Leadership Changes

The activist signaled it could take its case to shareholders at the upcoming annual meeting if talks do not produce a deal.

Overview

  • Elliott Investment Management disclosed a stake exceeding 10% in Norwegian Cruise Line and sent a letter and presentation urging a board overhaul, a management review, and a new business plan.
  • The firm said it prefers a negotiated outcome but is prepared to go directly to investors at the annual meeting, indicating willingness to launch a proxy contest.
  • Norwegian responded that it remains focused on long-term value creation under newly appointed CEO John Chidsey following Harry Sommer’s departure last week.
  • Elliott has privately approached Adam Goldstein, Royal Caribbean’s former president and COO, as a potential director nominee, according to the Wall Street Journal.
  • Norwegian shares jumped about 10% to 12% after the reports, as the campaign follows a year of underperformance versus Royal Caribbean and Carnival and arrives ahead of fourth-quarter results and board-nomination deadlines.