Predator Qantas on its knees as prey
WITH a market value of $2.1 billion, cash in the bank of more than $3 billion and a business that is worth more dead than alive, Qantas has gone from being an aviation predator to prey.
In the past week Qantas has lost 35 per cent of its market value as long-suffering investors have baled from the stock. The share volume, which averaged 50 million shares over each of the past four days, was significantly higher than the typical daily volume of between 6 and 8 million shares.
It suggests hedge funds and day traders are rushing onto the register in anticipation of a takeover offer or strategic partner pushing the stock price up.........
Certain carriers, investors and banks are examining the possibilities. Speculation has risen that Singapore Airlines and Emirates will look at what a potential tie-up with Qantas might look like. In the case of Singapore Airlines, if competition authorities and the federal government allowed a merger to happen, it would be a merger made in heaven. It would give Singapore access to a strong domestic business and Qantas a decent foothold in Asia.
Source: http://www.brisbanetimes.com.au/business/predator-qantas-on-its-knees-as-prey-20120610-204as.html#ixzz1xR5KYfaR
Last edited by WorthWhat; 10th Jun 2012 at 23:32.