QANTAS being taken over by Macquarie Bank..

[lovetravellingoz]

With Tiger entering Australia in a larger way....normally the QANTAS share price would have dipped....


So do I sell my shares now and ppocket the $$$...for if the deal does not go ahead....the new share price may be a lot lot lower than it currently is..

MMMMM decisons decisions..

 

[codash1099]

ABC Finance News

Don't expect a bail-out, Vaile tells Qantas
Wednesday February 14, 2007, 4:00 pm



Federal Transport Minister Mark Vaile has issued a warning to Qantas that the Government does not endorse airlines seeking taxpayer funded bail-outs.
Former transport minister John Anderson says he has deep reservations about the high debt level involved in the proposed $11 billion Qantas takeover.
Mr Vaile says it is not up to the Federal Government to decide debt arrangements for private companies but Qantas would carry a much higher level of debt under the proposed deal.
"As we've seen in international experience in the past where, and in our neighbourhood, where airlines have run into trouble, they often do come knocking on the Government's door and that is not something that we would like to countenance," he said.

 

[NM]

Hmmm, nice big envelope arrived on my desk a couple of days ago. Mrs LW got hers as well. Looks like I have a weekend of reading it cover-to-cover :-|

Save your time and just read all 40 odd pages of this thread. Surely it contains all the facts you need to know to make your decision .

 

[mabunji]

ABC Finance News


Federal Transport Minister Mark Vaile has issued a warning to Qantas that the Government does not endorse airlines seeking taxpayer funded bail-outs........
"As we've seen in international experience in the past where, and in our neighbourhood, where airlines have run into trouble, they often do come knocking on the Government's door and that is not something that we would like to countenance," he said.

Fair point. The Nationals Leader has indicated that this coalition government will not be receptive to any approach for funds if the change of management runs into trouble.

At the same time :

"The Liberal MP Bruce Baird said any new owner should be required to maintain Qantas as a full-service airline, to preserve regional services and not to send jobs offshore". SMH 14/2/07.

Which is it boys ?. Is the position of this government hands-on or hands-off in respect of Qantas ?

 

[QF WP]

Airline Partners Australia moved yesterday to hose down criticism from former transport Minister John Anderson that its debt-fuelled $11 billion bid for Qantas was not in the national interest...

 

[QF WP]

Save your time and just read all 40 odd pages of this thread. Surely it contains all the facts you need to know to make your decision .

...and I have. I'm sure to overlay the information here with the glossed up story that the Part A will give me.

 

[NM]

...and I have. I'm sure to overlay the information here with the glossed up story that the Part A will give me.

Ahh yes. There are facts, lies and innuendo - the challenge is to differentiate one from the others .

 

[QF WP]

QANTAS being taken over by APA??

Peter Costello has declared Qantas a "special case" in the economy and says the airline will always remain Australia's designated national carrier, following mounting concerns about private equity deals...

 

[QF WP]

Nervousness about the possible rejection of the Qantas takeover offer by major shareholders yesterday saw the airline's stock dip to its lowest price since December...

 

[Dave Noble]

The government could not decide which company shares could be sold and which couldn't, Prime Minister John Howard said today, ruling out specific government intervention to stop the proposed Qantas sale.

Mr Howard said foreign takeovers law would still be followed, as would specific legislation relating to any Qantas sale.

full article at PM won't block Qantas sale - Business - Business - smh.com.au

Dave

 

[ethernet]

Simple - Read the Financial Review for the skinny
1) Execs only pay 15% tax on their 'packages' - options, then 1/2 capital gains tax.
2) New law - No cap tains tax for foreigners - level playing field my foot
3) A big fat 10%?? Management fee based on asset value, not performance. Now these fees are supposed to be at arms length and commercially reasonable, but you don't see them putting this up for open tender. Very hard for tax authorities to work out out the legitamacy or reasonableness of these 'deductions'
4) Stunts - like build a shopping centre inear the end of the runway.
5) Getting TPA ammended - hoping abuse of position card will not be played too often.
This makes it a good racket, just add confiscating water and food to the picture, to see what a racket.

But obviously, the other player wants 'in' on the 'management' contract, so feathers likely to be ruffled.

 

[NM]

APA has extended their offer to purchase all QAN shares from the original deadline date of 9th March until the new deadline date of 3rd April.

So we have to wait a little longer to see what happens. APA currently hold a relevant interest in QAN of 6.09%.

 

[JohnK]

Hmmm.... will there be any further deadline revisions before final acceptance or rejection?

 

[Altair]

Big Qantas shareholders 'unwilling to sell'

Missed the biggest point, two institutional shareholders that combined hold nearly 10% that can block the takeover, are not yet willing to sell.
NZ Herald - The Latest New Zealand, World Business, Sport and Entertainment News

SYDNEY - Two big shareholders in Qantas Airways are unwilling to sell their stakes at the price offered by a private equity consortium, fuelling doubts the US$8.7 billion ($12.5 billion) takeover will go through, the Australian Financial Review reported today.
UBS Global Asset Management, which holds a 6 per cent stake, is unwilling to sell while Balanced Equity Management, with 3 per cent, is unconvinced about whether to accept the offer, the paper said on Wednesday, without citing sources.
It said some shareholders have argued that as long as Qantas' operating outlook remained strong, the offer of A$5.60 a share was not high enough. The consortium has said it will not raise the offer, which is conditional on it getting 90 per cent of the shares.

Extensions were always going to occur due to the fact that regulatory approvals were required.

 

[NM]

Re: Big Qantas shareholders 'unwilling to sell'

Missed the biggest point, two institutional shareholders that combined hold nearly 10% that can block the takeover, are not yet willing to sell.
NZ Herald - The Latest New Zealand, World Business, Sport and Entertainment News

I think there are a lot of games being played out, and a lot more to come.

The institutional shareholders are in the game to make money. They want/need a good return on their investment. They are going to hold out as long as possible to try to force APA to increase their offer, and APA are going to play the game of "this is out best and final offer". This will go on right up until the hours before the final close of the offer.

If they do block the takeover, the QAN share price will drop back to below $4 mark where it was before the takeover speculation started at the end of last year. That means the current shareholders would need to hold out until the share price rises naturally to above the $5.60 (less any dividends) mark to be able to better their return on investment, and even the best estimates would have that taking at least 2-3 years. So do they really believe they can make a better return by holding QAN shares at $4 and waiting 2-3 years before they get to a sellable price, of take the profit now and invest in something else that will potentially make them more profit over that 2-3 year period?

These institutional shareholders are not interested in how the deal will affect the FF program, or Australian jobs, or in-flight service. They are purely interested in what course of action will create the best return on their investment. I will be surprised if the determine their best return on investment is to be achieved by blocking the sale. But they do stand to gain if they can convince APA that they need to increase the offer above $5.60 a share.

 

[Altair]

I agree that they are trying to get more money for their shares. I also read elsewhere that they want to know the APA plans for QF which may indicate that they would like a piece of the pie instead of selling their shares garning a better ROI

 

[lovetravellingoz]

Costello announced today that the Federal Gov would allow the takeover subject to various conditions including maintenance of existing FF points.


However there were no conditions to say what the future value of points should be....nothing to rule out an "enhancement" or two down the track...

 

[oz_mark]

The Deed agreed to and referred to in the Newspaper articles is available online at http://www.treasurer.gov.au/tsr/content/downloads/009_Attachment.pdf

 

[simongr]

Costello announced today that the Federal Gov would allow the takeover subject to various conditions including maintenance of existing FF points.


However there were no conditions to say what the future value of points should be....nothing to rule out an "enhancement" or two down the track...

Actually the quote I heard on the news was that they would retain a FF program - nothing about FF points Well it looks like we will finally see if the sky falls in soon...

 

[Tooner]

Re: Big Qantas shareholders 'unwilling to sell'

The institutional shareholders are in the game to make money. They want/need a good return on their investment. They are going to hold out as long as possible to try to force APA to increase their offer, and APA are going to play the game of "this is out best and final offer". This will go on right up until the hours before the final close of the offer.

...

But they do stand to gain if they can convince APA that they need to increase the offer above $5.60 a share.

The problem for APA is that they have said the offer is final. Unless ASIC agrees, they can't increase the offer (mainly because the people who sold at recent prices were misled, IIRC).