Finance
Elliott builds over 10% stake in Norwegian Cruise, seeks board change
Published by Global Banking & Finance Review®
Posted on February 17, 2026
2 min readLast updated: February 17, 2026
Quick Summary
Elliott Management has acquired a 10% stake in Norwegian Cruise Line, aiming to push for operational changes to enhance the company's performance.
Elliott Management Acquires Over 10% Stake in Norwegian Cruise Line
Elliott Management's Stake and Board Change Proposal
Feb 17 (Reuters) - Elliott Management on Tuesday disclosed it has built a more than 10% stake in Norwegian Cruise Line Holdings, as the activist investor pushes for changes to the company's board and management to help turn around the cruise operator.
Current Challenges Facing Norwegian Cruise Line
Shares of the company were up about 6% in morning trading. The stock fell more than 13% last year.
Elliott's Vision for the Company
The Miami, Florida-based company has struggled with cost pressures, stiff competition and weak demand for its sea voyages, while its rivals, Royal Caribbean and Carnival Corp, have managed to drive consecutive gains.
Potential Board Appointments
The stake makes Elliott one of the company's top investors, along with Capital International Investors and The Vanguard Group, according to data compiled by LSEG.
Elliott said the current board had failed to fulfill their fundamental responsibilities and criticized their selection of management over the last decade, including last week's appointment of former Subway Restaurants boss, John Chidsey, as CEO.
The activist investor has now sought new, independent directors with relevant industry and operational expertise.
It has privately approached former Royal Caribbean president and COO Adam Goldstein about a potential board seat, the Wall Street Journal reported on Monday.
"We are committed to delivering durable, long-term value creation, which will be led by our recently appointed CEO, John Chidsey," a spokesperson at Norwegian Cruise Line Holdings said in a statement.
The activist investor also pushed for a new business plan at Norwegian, according to a presentation and letter sent to the company.
Elliott said it expects to reach a constructive resolution with Norwegian, while noting that it is prepared to take its case directly to shareholders. It believes these actions could help the stock reach $56 per share, or 159% higher than current levels.
"We see the biggest challenge for an activist or the new CEO being that of “a quick fix” as many of the issues that have plagued NCLH cannot be corrected overnight and are a result of multiple years of planning," said Patrick Scholes, analyst with Truist Securities.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Leroy Leo)
Key Takeaways
- •Elliott Management has acquired a 10% stake in Norwegian Cruise Line.
- •The investment aims to push for changes to improve the cruise operator.
- •Elliott Management is known for its activist investment strategies.
- •The acquisition was disclosed on a Tuesday in February.
- •The move is part of Elliott's broader investment strategy.
Frequently Asked Questions about Elliott builds over 10% stake in Norwegian Cruise, seeks board change
1What is an investment?
An investment is the allocation of resources, usually money, to generate income or profit. Investments can take various forms, including stocks, bonds, real estate, and mutual funds.
2What is equity?
Equity represents ownership in a company, typically in the form of stocks. It signifies the value of an owner's interest in the business after all liabilities have been deducted.
3What is corporate governance?
Corporate governance refers to the systems, principles, and processes by which companies are directed and controlled. It encompasses the relationships among stakeholders and the goals for which the corporation is governed.
