Qantas takeover could be all on within two weeks
Monday November 27, 2006
SYDNEY - A formal takeover bid for Qantas could be launched within a fortnight and a group closely associated with industry superannuation funds might be involved.
The Weekend Australian has named union-friendly investment company Industry Funds Management (IFM) as a consortium backer. IFM is run by Gary Weaven, a former assistant-secretary of the Australian Council of Trade Unions, who has been involved with union-based industry funds since they emerged from the Prices-Incomes Accord of the Hawke-Keating government.
Qantas chief executive Geoff Dixon played down speculation, saying it was still "very early days".
The consortium is understood to have approached Qantas last month and is already conducting due diligence, sources told the Weekend Australian. It is mulling a bid for Qantas that could be worth up to A$11 billion ($12.86 billion), or A$5.50 a share.
The consortium is led by US private equity firm, Texas Pacific Group, and Macquarie Bank. Canada's Onex Corp, which has experience in airline catering and aircraft parts manufacturing, is believed to have joined.
Sources said they believed the takeover bid would be resolved, one way or the other, within two weeks.
On Friday Australia's Prime Minister, John Howard, ruled out changing foreign ownership laws to accommodate foreign corporate raiders. Foreign ownership of Qantas is capped at 49 per cent. Single shareholders can hold up to 25 per cent and foreign airlines up to 35 per cent.