Norwegian Cruise Line Stock Jumps 11% as Elliott Takes 10% Stake
Activist firm Elliott Management has acquired over a 10% stake in Norwegian Cruise Line and plans to overhaul the board, install new management, and cut excessive spending. The stake drove an 11% jump in the stock this week as Elliott targets boosting the EBITDA margin from 36% to 45%.
1. Elliott Acquires Over 10% Stake
Elliott Management has built a stake exceeding 10% in Norwegian Cruise Line and intends to appoint new directors and senior executives. The firm plans to slash excessive costs and optimize capital structure to enhance profitability.
2. Stock Surges on Activist Move
Norwegian Cruise Line shares rose by 11% this week following the announcement. Elliott believes improving the EBITDA margin from 36% to 45% could more than double the share price, highlighting underperformance relative to Carnival and Royal Caribbean over the past three years.