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  • CCL and CUK top trade of the month 0 comments
    Feb 18, 2010 3:25 PM

    If you look at recent price activity between the Dual Listed Co's  CCL and CUK , CUK has vastly outperformed CCL . This is purely money flow related and is providing a tremendous arbitrage opportunity.  These are THE SAME company. There is NO reason for CUK to trade at a huge premium to CCL. In fact, the Company itself is in the marketplace doing this:

    In accordance with  Carnival Corporation  & plc's (NYSE/LSE:  CCL; NYSE:  CUK)
    previously announced  Stock  Swap (Plc  Share  Sale /Corp.  Stock  Repurchase)
    programme, Carnival Corporation  & plc  announces that on  2^nd February  2010
    Carnival  Investments  Limited   (a  wholly  owned   subsidiary  of   Carnival
    Corporation) sold 150,000 existing  ordinary shares that  it held in  Carnival
    plc at an average price of £23.14615906 per share. The highest price  received
    for the ordinary shares was £23.21 per share and the lowest price received was
    £23.04 per share.

    They do this to take advantage of the price anomaly. Any holder of CUK should SELL the shares and buy CCL. As with all DLC structures, they have tag along rights and are treated the same in all corporate actions. Shares in CUK are available for borrow at neg 3% rebate and there are listed options in both.

    When this trade reverts, I willl respond... and just like DISCA DISCK, EMC stub and everything else....YOU WILL OUTPERFORM.

    Disclosure: None

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