Because Carnival Corporation & plc operated under a dual listed company structure, an unusual “Stock Swap” arrangement had been created. Each year the Boards of Directors au- thorized the repurchase of a set dollar amount of Carnival plc ordinary shares and a set dollar amount of Carnival Corporation common stock shares under the “Stock Swap” program. The boards then used the “Stock Swap” program in situations where an economic benefit can be obtained because either Carnival Corporation common stock or Carnival plc ordinary shares were trading at a price that was at a premium or discount to the price of Carnival plc ordinary
CASE 16 Carnival Corporation & plc (2010) 16-15 shares or Carnival Corporation common stock, as the case may be. In effect, the company