QF's shares

[Flying Spaniard]

Hi,
Now that the trading restrictions have been lifted and the deal has been binned i expected to see the share price drop to numbers close to before the bid
the price today for a share is at $5.230 almost a dollar more than before the bid, has Qantas done that well in the space of a few months to justify its increase?

22-Nov-06 4.35 5.25 4.88 5.00 64,600,500 5.00
21-Nov-06 4.22 4.38 4.26 4.35 12,403,200 4.35

I am no expert at the stockmarket so could someone please explain to me why the shares didnt take a tumble?

Thanks!

[The_Cutest_of_Borg]

They didn't tumble because there is a good chance of another takeover bid, pitched at the same level. Some are saying that any takeover bid would have to be at a higher level, so the takeover premium remains.

Interestingly, parts of the Corporations act dealing with these sorts of things appear to say that because APA has twice made re-bid noises at critical times in the last few days, they are now compelled to go through with it. These parts of the act are designed to stop market manipulation...e.g. keeping the share price high after a failed bid in order to your money back.

[Flying Spaniard]

Thank you for clarifying this for me.

So what happens to the share if they do not come back with another offer?

I'm not a conspiracy theorist but could it be possible that Qantas planned this whole saga all along to artificially increase its share price?

[Capt Kremin]

Market forces would determine the price like any other share. They could go up, they could go down, sorry but my crystal ball is not working;)

[lk978]

for my two cents,

If anyone wants to artificially inflate the share price it is the share holders, yes the super funds that all us mum and dads have their money in. it was text book play, where they allowed the company sold off enough to get the deal progressing then they held out to up the price.

the fall out from this is not a crash of a share price but it ha put qantas in a bad area of miss management from its board, as now they have everyone out there knowing they can buy the company fo 11billion and they want to sell. It has also allowed allot of shres onto the market which can be bought by anyone at reasonable prices instead of an inflated take over premium price.

[speeeedy]

Actually the share price is where it is because that is where it should be, not anything to do with APA making other takeover offers, it will be $6 inside 2 months, mark these words.

In the last 5 months Air New Zealand has had a 100% increase in its share price, Virgin around 60% I think the qantas price has actually been held back by the takeover over artifically capping it at $5.45.

Just goes to show that Margie and Geoff don't know what the F%$K they are on about. The sooner GD is seen for the goose that he really is the better.

Bye Bye Marge
and
F.O.G.