the Island's regular callers -- which has already signed an agreement to merge with another Bermuda visitor.

Carnival Corporation announced on Tuesday that it had offered to buy Celebrity Cruise Line Inc. for $1.325 billion -- topping the $1.3 billion June 17 offer made by Royal Caribbean Cruise Lines.

Miami-based Carnival said it had not entered into an agreement with Celebrity yet but added it could boost its offer if it could "identify additional value'' in Celebrity.

Meanwhile RCCL and Celebrity -- a joint venture between Chandris Group and Overseas Shipholding Inc. -- have already signed an agreement to merge as long as certain conditions are met.

Carnival's offer includes $525 million in cash or stock and the assumption of $800 million of Celebrity debt.

RCCL's offer also included the assumption of debt and a purchase price of $270 million in stock and $230 million in cash.

Shares in the company, which is the industry's second biggest cruise operator, fell on concern that the company could lose a good acquisition to Carnival, investors said.

Including Mercury -- which is set to be delivered in October -- Celebrity operates five ships which have all been built this decade and have a double occupancy capacity of 8,200 berths.

Carnival, which operates the Carnival, Holland America, Windstar, Seabourn cruise lines, has 33 ships.

Earlier this month it bought Italian cruise ship operator Costa Crociere SpA, in a joint venture with Airtours Plc.

The purchase of Celebrity would almost double Royal Caribbean's fleet to 20 in three years, representing 38,000 berths.

And if RCCL were to take over Celebrity it would mean that three of Bermuda's regular visitors would fall under the same umbrella -- although RCCL -- and Carnival -- stressed they would keep the brands separate.

Celebrity operates Meridian and Zenith while Song of America represents RCCL in Bermuda.

Meanwhile Carnival is unrepresented on the Island although it has been pushing to be included in the Tourism Ministry's plans.

And West End Development Corporation (Wedco) officials are lobbying the Ministry to permit Carnival to sail into Dockyard.

But Tourism Minister David Dodwell said Carnival had not formally applied to Government to sail here although a Carnival spokesman told The Royal Gazette that the company had written to Government indicating its interest in cruising to Bermuda.

And Carnival has formed a partnership with the Port of Baltimore and has indicated that whatever Bermuda wants they'd be prepared to deliver.

But if Carnival was to apply, it would line up behind Celebrity which has the first option on new ships coming to the Island, prompting speculation that muscling into Bermuda could be behind the line's plans to buy.

Attempts to purchase Celebrity have not been considered surprising as industry analysts have predicted that there would be only four or five major cruise lines left in the world by early next century.