QANTAS being taken over by Macquarie Bank..

[serfty]

...
I spoke to my broker yesterday who advised me that APA's daily Significant Shareholder Statement indicated they had 30.06% of QAN stock. Well short of 90% but with time still on the offer period. But with the increasing time decay will come more definitive answers from larger shareholdings

That ~30% has been garnered from 50% of the existing shareholders (by number) when the bid was launched.

 

[Takeshi]

Its so obvious whats happening UBS know they are going to accept the bid, they started rumours to get the share price down, then snapped up a A380 Load of shares knowing they will make a quick profit at $5.45 a share.
UBS's investment banking arm is the advisor to Qantas for this bid, so they knew that the deal was going to be agreed on.

I wonder if this needs investigation of insider trading or market manipulation, its Obvious that UBS are doing this.

I would bet that UBS and the other Deutch bank ?? will accept at the last minute, anyone wanna bet me.

This is black & white why can no one see it ?

 

[oz_mark]

Its so obvious whats happening UBS know they are going to accept the bid, they started rumours to get the share price down, then snapped up a A380 Load of shares knowing they will make a quick profit at $5.45 a share.
UBS's investment banking arm is the advisor to Qantas for this bid, so they knew that the deal was going to be agreed on.

I wonder if this needs investigation of insider trading or market manipulation, its Obvious that UBS are doing this.

I would bet that UBS and the other Deutch bank ?? will accept at the last minute, anyone wanna bet me.

This is black & white why can no one see it ?

This is exactly what I have been suspecting is their strategy.

 

[NM]

I would bet that UBS and the other Deutch bank ?? will accept at the last minute, anyone wanna bet me.

I won't be accepting your bet :!:

This is black & white why can no one see it ?

Some people don't want to accept reality. Mrs NM tells me grey is in this season .

 

[oz_mark]

I won't be accepting your bet :!:

Some people don't want to accept reality. Mrs NM tells me grey is in this season .

Which shade?

 

[NM]

Which shade?

Any I guess. I am regularly described as shady :shock:

 

[serfty]

Its so obvious whats happening UBS know they are going to accept the bid, they started rumours to get the share price down, then snapped up a A380 Load of shares knowing they will make a quick profit at $5.45 a share.
UBS's investment banking arm is the advisor to Qantas for this bid, so they knew that the deal was going to be agreed on.

I wonder if this needs investigation of insider trading or market manipulation, its Obvious that UBS are doing this.

I would bet that UBS and the other Deutch bank ?? will accept at the last minute, anyone wanna bet me.

This is black & white why can no one see it ?

Having a blocking interest, UBS can completely hold out in the hope that APA abandon their current offer and make a new, better, one. However, that may not suit APA as any move to drop the 90 per cent condition, should enable those who have already lodged acceptances to the deal could to then pull out and rejoin at the better offer.

It's a gigantic game of Bluff.

It was reported yesterday that Credit Suisse have now gained 5.39% of Qantas.

There is obviously a lot of money to be made here and according to Terry McRann (It's about the Planes) it mainly revolves around the sale and lease back of AU$7 billion in Qantas Aircraft.

Institutions such as UBS & Credit Suisse have seen this and are wanting in on the action ...

 

[Takeshi]

Who owns Qantas right now ?

With all the recent transactions by hedge funds buying on behalf of clients, well how do we know that over 49% is not now owned by overseas clients, which would breach the Qantas Sales Act ???? very interesting.
If the bid fails, what a mess that will be to see how much of Qantas is owned by Aussies ???? very interesting.

 

[Dave Noble]

Qantas bidders moving to Plan B

AIRLINE Partners Australia is preparing to move to Plan B in its bid to gain control of Qantas, by laying the groundwork for a new debt package that will allow the consortium to change the terms of its $11.1 billion takeover bid.

For full article see Qantas bidders moving to Plan B - Business - Business - smh.com.au

Dave

 

[Dave Noble]

Banks agree to new deal in Qantas bid

AIRLINE Partners Australia's $11 billion bid for Qantas appears to be back in the air after banks behind the offer agreed to refinance it so that APA can take control of the airline without buying 100 per cent.

A new multibillion-dollar debt package was approved in principle by the banks yesterday. It will allow APA to drop a clause that made its $5.45-a-share bid conditional on APA reaching a shareholding of least 90 per cent, the point at which it can compulsorily acquire the remaining shares. Qantas shares firmed 7c to $5.25 on Thursday as confidence grew that APA's bid was alive.

Article at Banks agree to new deal in Qantas bid - Business - Business - smh.com.au

Dave

 

[Takeshi]

I don't understand this so does this mean APA can now aquire my shares because the banks have dropped this condition ?

What if I or many other retail shareholders don't want to sell no matter what?

Its confusing to me can someone make it more clear ?
Thanks

 

[oz_mark]

I don't understand this so does this mean APA can now aquire my shares because the banks have dropped this condition ?

What if I or many other retail shareholders don't want to sell no matter what?

Its confusing to me can someone make it more clear ?
Thanks

The thing to bear in mind about the 90% condition, is that once they had obtained 90% they then move to compulsory aquisition of the rest. So 90% acceptance would give them 100% ownership of Qantas, and you would have no choice but to sell.

By moving to below 90%, they do not end up in a situation where they can compulsarily acquire the rest of Qantas, but by getting to 80% they will control Qantas. If they get to 80 but not 90, you do not need to sell your shares. However, you would end of as a minority shareholder with no say in anything.

 

[Dave Noble]

Also suggesting I thought that other institutional investors might decide to sell their holdings rather than be shareholders without an effective voice thereby assisting the climb to 90% ownership

Lowering the minimum acceptance condition would paradoxically make APA's attainment of 100 per cent of Qantas more likely, because it would pressure funds to sell rather than risk being caught as minority shareholders.

Dave

 

[Takeshi]

Yes but if they don't get to 90% then they can not delist the company right ?

Also can they do as they please with Qantas ? selloff assets ect ect as the talk was that they will not have the assets as security unless they got the 90%.

What if 5% of hardy Aussies that are dead against our national icon been taken over as a money making venture and not to improve the company which seems the case here.
Can these 5% stop APA delisting Qantas which is their ultimate goal.

Tnhe other thing that I cannot understand is why would you selloff all your assets Freight Catering holidays ect ect the company will now be worth less right ?
Its like if i sell you my car but I will remove the mag wheels the leather seats it will be worth less.

APA keep saying that they have NO Plans for any asset sales but we all know this is not true the For Sale sign will come up months if not weeks after they take over you can bet your house on this.

This whole thing is confusing so my big question is if even 1% of shareholders will not budge then can APA delist and relist Qantas ???????

Thanks

 

[Dave Noble]

APA keep saying that they have NO Plans for any asset sales but we all know this is not true the For Sale sign will come up months if not weeks after they take over you can bet your house on this.

This whole thing is confusing so my big question is if even 1% of shareholders will not budge then can APA delist and relist Qantas ???????

Thanks

Not having read their plans, I cannot see how such a statement as "we all know that this is not true" can be made. I don't know what they plan to do; maybe they will help Qantas strengthen

I was assuming that if they get 90% later on then they would be in a position to take the remaining 10%, but maybe that isn't the case

Dave

 

[Tooner]

I was assuming that if they get 90% later on then they would be in a position to take the remaining 10%, but maybe that isn't the caseDave

True Dave - once at 90% APA can move to compulsory acquisition. The SMH article correctly pointed out that there is now a little pressure on the funds to act before becoming stranded.

On a slightly different tack, Deutsche's now on over 10% of Qantas, with at least part subject to derivative arrangements. Either someone's bought some options or entered into a swap.

Let's not forget this is how BHP Billiton snatched WMC from under the noses of Xstrata.

 

[Kiwi Flyer]

Yes but if they don't get to 90% then they can not delist the company right ?

Also can they do as they please with Qantas ? selloff assets ect ect as the talk was that they will not have the assets as security unless they got the 90%.

What if 5% of hardy Aussies that are dead against our national icon been taken over as a money making venture and not to improve the company which seems the case here.
Can these 5% stop APA delisting Qantas which is their ultimate goal.

Tnhe other thing that I cannot understand is why would you selloff all your assets Freight Catering holidays ect ect the company will now be worth less right ?
Its like if i sell you my car but I will remove the mag wheels the leather seats it will be worth less.

APA keep saying that they have NO Plans for any asset sales but we all know this is not true the For Sale sign will come up months if not weeks after they take over you can bet your house on this.

This whole thing is confusing so my big question is if even 1% of shareholders will not budge then can APA delist and relist Qantas ???????

Thanks

Subject to the rules, majority votes has control. So if the consortium has say 80% then the other 20% cannot generally stop the majority owner running QF how they see fit. There are some exceptions due to regulations.

As for your car analogy, what if removing mag wheels only had $10 impact on car sale value but you were paid $100 for the mags? By selling them you are $90 better off.

 

[simongr]

As for your car analogy, what if removing mag wheels only had $10 impact on car sale value but you were paid $100 for the mags? By selling them you are $90 better off.

To clarify the analogy a little further. If your car is generating revenue for you of $100 (after costs of $100) and after you sell the wheels (and have them loaned back to you for less cost than you were originally incurring for maintaining them) your revenue is now $110 - sure if you now sell your total asset its worth a little less, but you have been generating more income for a while.

Also to clarify a few things (based on my reading of this). APA's "lenders" have previously said that unless APA get 90% of shareholders to agree to the price then they wont lend APA the money and thus the bid wont go ahead. The lenders originally needed the guaranteed ownership to make sure they get their returns on their investment.

What the banks have now agreed to is to lend APA the money even APA dont get full control of QF. This increases the risk for the lenders. It also reduces the risk for the speculative investors as they might now get a pay off even if APA dont get the 90%.

Back to takeshi's points. If you dont have over 10% of shares then you cant block the takeover or anything else. If APA have below 100% of the shares they are in a strong position to choose the Directors of the business. they will be likely to choose directors who support their plans - whatever they might be. Thus any proposal from the directors to sell off assets will be welcomed.

 

[JohnK]

Isn't this sale over yet?

APA keep saying that they have NO Plans for any asset sales but we all know this is not true the For Sale sign will come up months if not weeks after they take over you can bet your house on this.

Take a tip from someone who has not idea what is happening. The APA takeover bid cannot be successful unless they first sell all QF owned aircraft, and then the remainder of QF, to APA, and subsidiaries, and then lease back to QF at a significant profit.

Fair? Such is life and many people have seen time in jail for doing a lot less.

 

[serfty]

Not having 90% (and hence 100%) of the shares will force the Qantas to remain under the scrutiny of laws relating to publically listed companies.

At the very least, this means the management will, by legislation, have to be much more transparent about the company's activities than they would if they attained full ownership.

More than that, this relates to the ability to tap into Qantas cash flow to repay the APA debt as the board would be forced to ensure "reasonable" dividends to the shareholders.