Carnival's tax break

The Arison family at the top of Carnival announced plans yesterday to sell $1bn (£700m) worth of shares in the world's number one cruise company - just four months after its takeover of P&O Princess.

Shares in the company slumped 3% to £20.82 in London as investors fretted that the disposal meant a lack of confidence in growth prospects.

More than half of the cash will go to Carnival's chairman and chief executive, Micky Arison, who inherited control of the company from his founder father, Ted.

Up to 32m shares in the Miami-based group are to be disposed of, amounting to 4% of the company's voting rights, but the Arison family would still own 246m shares and control 31% of the total combined voting rights in Carnival.

The group said it was selling parts of its holdings for tax reasons.

Carnival, like other companies in the holiday sector, has been hit hard by the downturn in business following the 9/11 terrorist attacks in the US.