withdrew plans to buy two of the company's lines.

Vard, the loss-making Norwegian cruise firm, operates Royal Viking Line, Royal Cruise Line and Norwegian Cruise Line, which runs Bermuda visitor the Dreamward .

AEA Investors, a US company, withdrew a $565 million bid to acquire the two "Royal'' lines.

It said it decided not to pursue the deal after concluding that its investment goals for the two cruise lines could not be achieved within the financial framework proposed for the transaction.

Proceeds from the disposal would have enabled Vard to boost its position in the mass cruise market by concentrating financial resources on building up Norwegian Cruise Line.

Vard's shares fell 21 percent in Oslo after news that the deal had fallen through.

The collapse of the transaction marks the second time Vard has failed to conclude asset disposals in recent months.

Mr. Terje Mikalsen, Vard chairman, said alternatives to the US deal were being studied, but would not give details.

"We have to take our bearings and see what the best approach would be, but we do not want a situation where it is perceived that we are a company desperate to sell assets to raise cash.

"This may have been the situation a year ago but not now.'' Cruise analysts said AEA may have had reservations about the potential of the high-risk cruise industry, given the cost of participation and the return on investment.

Vard said bookings for the two cruise lines were significantly stronger than in previous years, and forecasted both lines would make profits this year.