Carnival to buy Royal Caribbean International?

Rumors are flying in the travel world that Carnival Corporation is trying to buy Royal Caribbean. If it does happen, Carnival would own over 80% of the cruise berths. Good thing or bad? Not a good thing in my eyes.

"Cruise industry insiders are buzzing about a rumored takeover bid by Carnival Corp. & PLC for Royal Caribbean Cruises Ltd. at a purported $35.00/share in cash and Carnival Corp & PLC stock.
At a premium of nearly 180% over it's current trading price of $12.60-$12.80 per share, the $35.00 per share cash/stock tender offer for RCCL represents a market value of USD $7.57 billion.
With the recent softness in the cruise market, this potential merging of the top two industry leaders would create a near monopoly with nearly 82% of the North American market, that is estimated to result in cost savings in excess of $300 million per year for the combined entity.
This offer will, most likely, force NCL parent company Star Cruises, Inc., to make a bid for RCCL. An NCL/RCCL combined company would be much closer in market share to the current Carnival Corp. and would increase competition in the industry.
However, Daily Cruise News wonders if the $35.00 per share will be enough for shareholders who have seen RCCL stock routinely trade in the $40.00-$50.00/share range over the past 5 years, and which has only been trading under $35.00/share for a little over a year. We would expect a successful acquisition in the $40.00-$45.00 per share range.
This merger of the top two companies in the cruise industry has been quietly discussed and supposed ever since Carnival Corp. & PLC beat our RCCL in the acquisition of P&O / Princess cruises in 2002. It seems that it has taken the current economic downturn to have all the players in this drama come to the table.
At Daily Cruise News, where our #1 priority is the travel agent and the travel agent distribution system, we vehemently oppose this CCL/RCCL proposed merger and would back only the NCL / RCCL option if it arises.
The former would damage the future of travel agents and would jeopardize the commission levels currently earned, whereas the latter would increase competition and solidify our distribution system."