Shares in Carnival sank almost 14 per cent yesterday after the world's largest cruise ship company suspended its quarterly dividend for 2009 to shore up its balance sheet ahead of $3.5bn (£2.2bn) in capital expenditure planned for the year.

The company, which is listed in both New York and London, yesterday said the dividend would be suspended due to the high cost of borrowing. Management would re-visit the dividend policy "based on the circumstances" prevailing during the year, Carnival said.