Princess investors fear veto

INVESTORS in P&O Princess are concerned they will be handing over power of veto for major corporate decisions to the four shipping tycoons who control Royal Caribbean if the companies are merged.

Although the merger proposals would on the surface give Princess shareholders 50.3% of the company, the big four Royal backers would end up with 26.2% of the shares, which they have pledged to use as a block vote in future ballots. That would give them the power to overturn proposals requiring the standard 75% shareholder approval. The biggest former Princess shareholder would be Henderson Global Investors, with only 2.49%.

One fund manager who contacted the London Evening Standard's Business Day section said: 'It seems like yet another clause put in the deal to satisfy Royal Caribbean.' Of the Royal shareholders, Cruise Associates, controlled by Hyatt Hotels boss Thomas Pritzker and Israeli Eyal Ofer, will own 12.37% of the combined company, Norwegian Arne Wilhelmsen's A Wilhelmsen group will take 11.88% and Greek magnate John Chandris's Archinav Holdings will own 1.95%.

The Princess board on Monday rejected a conditional 500p-a-share takeover offer from Carnival.