Australia's Qantas takeover bid meets resistance from key shareholders - report |
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Wed, 28 Feb 2007 23:39
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SYDNEY (XFN-ASIA) - The Macquarie Bank Ltd-led Airline Partners Australia (APA) consortium's 11.1 bln aud takeover offer for Qantas Airways Ltd has met resistance from key shareholders, the Sydney Morning Herald reported, citing market sources.The newspaper said it is believed that UBS Global Asset Management and Balanced Equity Management, which between them own 9 pct of the national flag carrier, are agitating for APA to raise its 5.45 aud a share offer.Although the bid has been recommended by the Qantas board, the Herald said the two shareholders believe the offer undervalues the airline because of its improving earnings.The APA offer is conditional on 90 pct acceptance.Yesterday the consortium extended its offer to April 3 from March 9.Announcing the decision after the share market closed, APA, which also includes Allco Equity Partners, US private equity group Texas Pacific and Canada's Onex Corp, revealed that its original stake in Qantas has risen to 6.0 pct from 0.27 pct.The decision comes ahead of the Australian Competition and Consumer Commission's announcement into whether it will clear the bid after an investigation into Macquarie Bank's control of Sydney Airport and involvement in the bidding consortium. The announcement is expected by tomorrow.(1 usd = 1.27 aud)bruce.hextall@xfn.comblh/mas
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Australia's Qantas says independent expert sees 5.60 aud/share offer as fair 