Group mulls new bid for Qantas
The buyout group bidding for Australia's Qantas Airways Ltd said yesterday it was considering launching a new offer for the airline following the dramatic collapse of its A$11 billion ($9 billion) bid.
The group, which includes Macquarie Bank Ltd and private equity firm Texas Pacific Group, said it was exploring alternatives, including a fresh A$5.45 a share offer, after an apparent blunder sank the world's largest airline takeover.
A Qantas Airways aircraft takes off from Sydney. Jack Atley/Bloomberg News |
The group, Airline Partners Australia (APA), initially had failed to reach 50 percent of shareholder acceptances needed to keep the offer alive by Friday's deadline.
A late acceptance from a US shareholder brought it up to 50.6 percent, but Australian regulators refused to allow the late support, effectively killing the bid.
"Qantas farce: heads will roll," the front-page headline of the Sydney Morning Herald newspaper read yesterday after the airline declared the buy-out dead late on Sunday.
Qantas shares had been due to resume trading but were placed on a trading halt yesterday.
Hedge funds, which had swooped in to buy Qantas stock in the hope of turning a quick profit, had been betting on acceptances getting over the 50 percent line and it appeared the collapse of the offer had been a mistake, analysts said.
It was another twist in the sale of the national icon which has been strongly opposed by unions and some politicians but eventually won support from the Australian government and Qantas management.
"APA is exploring a number of alternatives including the possibility of making a renewed offer for Qantas at A$5.45 per share," the bid group it said in a statement yesterday.
The previous offer was also valued at A$5.45 per share.
Analysts did not expect APA to make another bid for Qantas for three to six months and said it was highly unlikely a third party would get involved.
"For anybody else to come in having witnessed the debacle that has gone on in the last few months and the cost involved would be fairly hesitant before they stepped up to the plate," said Peter Harbison, managing director of the Center for Asia Pacific Aviation.
Australia's Takeover Panel told Reuters yesterday there were no specific rules related to a cooling-off period in between bids.
Agencies
(China Daily 05/08/2007 page16)
