QANTAS being taken over by Macquarie Bank..

[lovetravellingoz]

.Personally I would take the money and run. .

yep.....that is my intention..

 

[simongr]

Personally I would take the money and run. .

yep.....that is my intention..

Well after MacBank take over you may not have any choice other than to run everywhere

 

[needaholiday]

Qantas non-executive directors reject takeover

Just on Reuters

09:57 13Dec06 RTRS-QANTAS <QAN.AX> SAYS IT HAS RECIEVED CONDITIONAL PROPOSAL FROM CONSORTIUM
09:57 13Dec06 RTRS-QANTAS SAYS PROPOSED OFFER PRICE IS A$5.50 /SHARE
09:58 13Dec06 RTRS-QANTAS SAYS CONSORTIUM INCLUDES ALLCO EQUITY, MACQUARIE BANK, ONEX AND TEXAS PACIFIC
09:59 13Dec06 RTRS-QANTAS SAYS NON EXECUTIVE DIRECTORS SAY PROPOSAL IS NOT ACCEPTABLE
10:04 13Dec06 RTRS-Australia's Qantas gets A$10.9 billion takeover bid
MELBOURNE, Dec 13 (Reuters) - Australia's Qantas Airways
<QAN.AX> said on Wednesday it has received a A$10.9 billion ($8.6
billion) buyout offer led by Macquarie Bank Ltd. <MBL.AX> and
private equity firm Texas Pacific Group at A$5.50 a share.
It said its non-executive directors consider the offer
unacceptable. Qantas last traded at A$5.23.
The bidding team has been shaped to ensure it meets ownership
caps on Australia's flag carrier which require the airline to
remain majority Australian owned with no individual owning more
than 25 percent.
The consortium also includes Qantas management Canadian
investment firm Onex Corp. <OCX.TO> and Allco Finance Group
<AFG.AX>.
($1=A$1.27)
((Reporting by Sonali Paul; [email protected]; Reuters
Messaging: [email protected]; +61 3 9286 1419))

 

[needaholiday]

Non-executive directores reject takeover bid.

10:34 13Dec06 RTRS-UPDATE 1-Qantas board rejects A$10.9 billion takeover bid

MELBOURNE, Dec 13 (Reuters) - Australia's Qantas Airways Ltd.
<QAN.AX> has rejected a conditional A$10.9 billion ($8.6 billion)
buyout offer led by Macquarie Bank Ltd. <MBL.AX> and Texas
Pacific Group [TPG.UL].
The offer of A$5.50 a share was 5 percent above Qantas's last
trade.
"The proposed offer price is A$5.50 per share and
incorporates a number of complex conditions, the requirement for
unanimous support by Qantas directors and a break fee," Qantas
said in a statement.
"The non-executive directors consider that the terms of the
proposal are not acceptable."
Qantas said it would keep shareholders informed of any
further developments.
The bidding team includes Allco Equity Partners, Allco
Finance Group <AFG.AX>, Macquarie, Canadian investment firm Onex
Corp. <OCX.TO> and private equity firm Texas Pacific Group
[TPG.UL].
The offer price is 26 percent higher than Qantas's share
price before the airline said on Nov. 22 that it had been
approached with a buyout offer.
It values Qantas at 15.6 times forecast earnings for 2007,
compared with regional rivals Singapore Airlines Ltd. <SIAL.SI>
at 12.6 and Cathay Pacific Airways <0293.HK> at 17.8, according
to Reuters data.
A Qantas spokesman had no immediate comment and spokesmen for
the bidding consortium were not immediately available.
($1=A$1.27)
((Reporting by Sonali Paul, editing by James Thornhill;
[email protected]; Reuters Messaging:
[email protected]; +61 3 9286 1419))
Keywords: QANTAS TAKEOVER/

 

[oz_mark]

Re: Qantas non-executive directors reject takeover

From NineMSN

Qantas rejects $11 billion takeover bid

Qantas rejects $11 billion takeover bid

Qantas Airways has rejected an $11 billion takeover bid from a consortium, which includes Australia's Macquarie Bank.
Qantas said it had received a non-binding conditional proposal to acquire 100 per cent of the company from a consortium including Allco Equity Partners, Allco Finance Group, Macquarie Bank, Canadian buy-out group Onex and US private equity firm Texas Pacific Group.
"The proposed offer price is $5.50 per share and incorporates a number of complex conditions, the requirement for unanimous support by Qantas directors and a break fee," the airline said in a statement.

 

[Tooner]

$5.50 offered and rejected. Where will the next bid be lobbed? I would imagine the strategy was agreed (or mandated) that the first bid be $5.50, and flush out where would be acceptable.

I note there were lots of conditions and also a break fee.

Much, much more water to go under this bridge I feel.

 

[Altair]

I wonder why the directors rejected it? The offer was higher than what QAN has been trading, nearly ever, and the price multiples are higher for such a company.
The fact that the consortium wanted Board approval and the undisclosed break fee indicates to me that the consortium naturally does not want to enter a bidding war and may not bid much higher considering the risks of the company.
I think that it would not be good for many indirect investors if QAN was takenover by a LBO, especially when it comes to the refloating of QAN 2, if it makes it onto the index again many would need to buy into it to maintain their portfolio, even if QAN 2 looked to be over leveraged and shackled with "management fees".
So as QF flyers will we look forward to a kindler gentler QF or a QF forced to make more cutbacks to increase shareholder value to justify the rejection.

 

[Tooner]

I wonder why the directors rejected it? The offer was higher than what QAN has been trading, nearly ever, and the price multiples are higher for such a company.

I would imagine Qantas' advisers would be telling them they can negotiate $5.60 or more, with fewer conditions. The break fee is interesting, as an alternative bidder faces similar regulatory constraints to the consortium.

 

[drron]

Well Qantas shares dropping 14 cents on turnover of 37 million suggests a few market players dont think a higher bid is coming.

 

[SeatBackForward]

Overnight discussions are indicating it'll happen for $5.60

 

[JohnK]

First hurdle safely negotiated. So far so good!

 

[Mal]

$6 is now being bandied around as a new offer price.

Will be interesting to see if it is offered. I assume that it would get a lot more support from Qantas...

 

[bravoecho1]

Looks like they have got the deal across the table with $5.60 and the removal of the break fee clause.

 

[robertz]

The ACCC is meant to.

As I said earlier, we should call this country "Macquarie Corp"

How about 'United States of Macquarie'.

It is interesting they want to value Delta at US$8 Billion and QF at US$8.7

(TPG) I know they havent put the whole $8.7 in, but why would you bother with QF when DL have a much better long term growth forcast than QF could possibly have. (More mergers, huge amount of costs to be cut, massive amounts of routes). From TPG, there is a lot more to this story, I recon.

Maybe something like this. Buy US Airways in Chap11 for a couple of Bill, Buy 25% of QF which is the worlds most profitable airline, start morgaging a lot of QF to pay for the DL buyout which is in chap11 as well. PRAY the whole stack of cards doesnt fall.

Oh and pick up Sabre, to make the complete supply chain. Along with Burger King , I can see where this is going.

1) Make your booking - Sabre - TPG
2) Drive to SYD - Tolls to Mac
3) Pack at airport - Owned by Mac
4) Fly QF - Mac/TPG
5) Inflight catering will now be BK items from the US - TPG.

Who knows.......... I for one hope it doesnt get through the Govt....

Rob

 

[Yada Yada]

Looks like they have got the deal across the table with $5.60 and the removal of the break fee clause.

So MacQanTexas Airlines it is!

It will be interesting to see if the preferential treatment QF is reported to have with the Federal Govt now wanes, as some expect it might. This may be good news for the likes of SQ.

 

[Tooner]

I for one hope it doesnt get through the Govt....

In understand where you are coming from Rob, but there doesn't appear to be much that needs to go to the Governemnt for approval. TPG has less than 15%, AEP has less than 25%, MBL has less than 15%, etc

 

[codash1099]

In understand where you are coming from Rob, but there doesn't appear to be much that needs to go to the Governemnt for approval. TPG has less than 15%, AEP has less than 25%, MBL has less than 15%, etc

I would think the only grounds the Government would have to reject it would be "public/national interest" (whatever that means).

 

[simongr]

Well a deal has been done - so now its up to the pollies to interfere and if not its down to management to work out what's next

 

[JohnK]

So MacQanTexas Airlines it is!

Apparently Macquarie is moving aside after they receive the $400 million fee that was promised. I did not think that the board would give in so easily, but when you are lining your pockets with a share of $100K+ I can understand.

It will be interesting to see if the preferential treatment QF is reported to have with the Federal Govt now wanes, as some expect it might. This may be good news for the likes of SQ.

Even though it may have new owners soon will it still be regarded as our national airline?

 

[pacblue]

While, in most people's minds it will always be regarded as our flag carrier, it can no longer truly be called our "national airline".

The "Sprit of Australia" - will now only be Australian in spirit.

Dixon and Jackson have sold Qantas down the river.

As Geoff gets ready to walk back to Wagga Wagga, with an enormous bonus, staff will be cut, the FF program will be sold off, along with catering, maintenence etc.

You will see a cheap and nasty Qantas under MBL, as they continually hack away at costs and take quality -- and what's left of the standard of service -- with it.