The local boss of investment giant Bain Capital, Mike Murphy, is in the midst of a corporate battle. His foe is the Richard Branson-backed investment firm, Cyrus Capital. The prize is Virgin Australia.
Murphy, a former Olympic diver, had some early wins. Bain elbowed heavyweight investors including Ben Gray’s BGH and US-investment giant Oaktree Capital out of contention for the airline in the first round of bidding. He also snared former Jetstar chief executive Jayne Hrdlicka and insolvency guru Mark Mentha as advisers for Bain’s bid.
Former Jetstar CEO Jayne Hrdlicka and insolvency guru Mark Mentha won't be joining Bain Capital's Mike Murphy (centre) in future meetings with Virgin's unions. CREDIT:JOE BENKE
It’s just too bad he’s been told that he can’t bring these two advisers into the final negotiations. Union leaders have drawn the line at dealing with Hrdlicka and Mentha, citing ill will from Hrdlicka’s time at Jetstar - not the Transport Workers Union’s favourite company - and Mentha’s role advising on the failed Ansett rescue deal in 2001.
Sources close to Bain’s bid have confirmed that talks between Bain and prospective union stakeholders are now occurring on a "principal to principal" basis. In a meeting between Bain and union representatives on Tuesday, Hrdlicka was not present. Mentha attended but took a back seat. CBD is told Mentha and Hrdlicka will not be in union meetings going forward.
Maybe Hrdlicka needs to pick up a few tips from her neighbour and tennis pal Josh Frydenberg on how to have her own Road to Damascus conversion to the union cause as he did during the pandemic. It might determine whether she is in the running for the Virgin CEO job having been abruptly dumped by a2 Milk before Christmas.
The ACTU is leading the negotiations for 11 major stakeholder unions, including the Air Services Union and the TWU, representing Virgin’s 9000 employees who are owed about $450 million.