quote:

---

Sale of Oceania under discussion, sources say
19/9/2006
In what could be a companion deal to its acquisition of Pullmantur SA, Royal Caribbean Cruises Ltd. is believed to be preparing an offer for Oceania Cruises.
Well-placed sources told Seatrade Insider Royal Caribbean is working on a bid of approximately $700m for Oceania, although financial experts not connected to the two lines said the figure sounded high.

A Royal Caribbean spokeswoman had no comment.

Oceania spokesman Tim Rubacky would neither confirm nor deny the report. However, he added: ‘When a company is as successful as we are, it’s logical there would be an intense amount of speculation when we’re about to enter a period of growth, and we’re flattered by all the attention.’

If realized, such a transaction would bring Oceania’s fleet of three upscale 684-passenger ships to complement Celebrity Cruises’ premium-positioned fleet and give the company broader geographic range, the sources said. Oceania’s capacity could possibly be expanded with the two R ships of Pullmantur, sisters to the Oceania vessels. Pullmantur could grow with older tonnage from the Royal Caribbean fleet.

If a deal is consummated, it closely follows Royal Caribbean’s notice of its intention to acquire Pullmantur in a $900m transaction.

After the Aug. 31 Pullmantur announcement, analysts asked Royal Caribbean management if its priority of reducing leverage and improving its debt ratings had changed in light of the purchase. CFO Luis Leon said the company would continue to strengthen its balance sheet over time but added that Royal Caribbean won’t neglect those ‘right opportunities.’

---

I always thought RCCL would try to get Oceania from th begining. maybe RCCL is trying to compete with Carnival more closely? your thoughts?

******

But is it realistic to think the Oceania brand survives? I can see Pullementur getting old RCI tonnage. I can see Celebrity getting Oceania and some Pullementur ships. But I'm not sure RCCL wants to start spreading thinner by also taking on a small up-scale line.

Oceania wants more Rs.. we know that; they haven't been able to get them.
Oceania don't have the money to buy out Pullmantur, so they go into cahoots with RCCL.

RCCL buy Pullmantur.
RCCL buy Oceania.

Oceania get 5 R ships
Pullmantur get the leftovers from RCCL

As long as both Oceania and Pullmantur retain their brand names and there is no interfering by RCCL on how things must be done and what food is served etc, then I think this is fine.

Oceania has built up a very fine reputation and it would be sad to see that fall over. The less known about any RCCL connection the better imo.

Pullmantur must also keep Oceanic sailing. They would need some 'newish' tonnage to replace the R vessels, but a couple of 'of the seas' I am sure would go down will with the Spanish market. The bad thing is the loss of Havana calls. This I know has upset a few people.

Pam

[ 09-20-2006: Message edited by: PamM ]

quote:

---

Originally posted by PamM:

As long as both Oceania and Pullmantur retain their brand names and there is no interfering by RCCL on how things must be done and what food is served etc, then I think this is fine.

Oceania has built up a very fine reputation and it would be sad to see that fall over. The less known about any RCCL connection the better imo.

[ 09-20-2006: Message edited by: PamM ]

---

I agree--if Royal Caribbean can follow Carnival's business model, and keep their acquisitions as separate, unique entities, while building on those strengths, it could work out well. Previously, RCCL attempted to dilute the Celebrity product to make it fit in with the huge mega-brand they have created. Perhaps they have finally seen the light and have realized that the "one brand fits all" philosophy just doesn't appeal to everyone.

quote:

---

Originally posted by Linerrich:

the "one brand fits all" philosophy just doesn't appeal to everyone.

Rich

---

But if RCCL is going to buy Oceania, just to keep it a niche brand, I'm unsure of the real value to the company. Inded, that is true of their last couple of buy-outs. Buy lots of little brands doesn't seem to fit their long-term plans, at least, as they seem to come across on this side of the pond.

I like and agree with the idea put forth on Sea Trade, that has Oceania being folded into Celebrity. It seems more logical from a pure business standpoint to give Celebrity more "upscale" ships and options. They would also preserve their global branding approach, appeal to a larger section of high-money cruise prospects, etc.