Shares of Norwegian Cruise Line (NCLH) are up 6% on reports that activist investor Elliott Investment Management has built a 10% stake in the company.
According to reports, Elliott Management plans to push for a turnaround at the cruise operator, which has underperformed rivals Royal Caribbean (RCL) and Carnival (CCL) in recent years.
Elliott Management has also reportedly tapped Adam Goldstein, the former president of Royal Caribbean, to join the board of directors at Norwegian Cruise Line.
Elliott views Goldstein as a key executive in the strong financial performance of Royal Caribbean and thinks he could help turnaround Norwegian.
Key to the success of Royal Caribbean and Carnival have been their ability to attract affluent customers and secure repeat bookings from them.
Norwegian Cruise Line has struggled with poor bookings and financial results since the Covid-19 pandemic struck in 2020.
Norwegian recently appointed former Subway Chief Executive Officer (CEO) John Chidsey as its new leader.
NCLH stock has declined 20% over the last five years to trade at $21.49 U.S. a share.
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