SYDNEY, Nov 22 (Reuters) - Macquarie Bank Ltd. (MBL.AX: Quote, Profile, Research) and private equity group Texas Pacific Group [TPG.UL] are preparing a buyout proposal for Qantas Airways Ltd. (QAN.AX: Quote, Profile, Research), the Australian Financial Review reported on Wednesday.
The paper said market sources are saying it is not a question of if Macquarie is working on a bid, but when it is ready to pounce, and added that senior market players were taking seriously rumours of a bid of A$5.20 a share, valuing Qantas at nearly A$10 billion ($7.7 billion).
Qantas shares closed at A$4.35 on Tuesday.
The deal, although fraught with political difficulties, would involve Macquarie and associates taking a 25 percent stake in Qantas, other Australian investors taking 25 percent, Qantas senior management being asked to take 1 percent and international players, led by Texas Pacific, taking the rest, the paper said.
That mix would allow the consortium to get round ownership restrictions that limit one individual entity to no more that 25 percent of the airline, and international interests collectively owning no more that 49 percent.
Qantas executives acknowledged the speculation, but declined to comment, the paper said.
The AFR reported earlier in November that a private equity group was eyeing Qantas, sending shares in the airline sharply higher.
the 1 percent for management means 100 million dollars as another way of bonuses. time to get the pollies reved up.
