Qantas Ripe for Takeover

[WorthWhat]

Sinking share price leaves carrier ripe for a takeover

About $20 million a day. This is the price that Alan Joyce (was) willing to strip from Qantas and its shareholders to beat the unions into submission....

Joyce and the Qantas board decided to make industrial relations the weapon to cut costs and maintain margins and yields. In doing so they have driven the share price into the ground, making it a sitting duck for a takeover.

Sinking share price leaves carrier ripe for a takeover - National News - National - General - Newcastle Herald (http://www.theherald.com.au/news/national/national/general/sinking-share-price-leaves-carrier-ripe-for-a-takeover/2340904.aspx)

[1a sound asleep]

Order Estimate
Security QANTAS AIRWAYS FPO
Order Style Default Expiry
Quantity 1000000
Indicative Price $1.000
SubTotal $1000000.000
Brokerage & Costs Incl GST $1199.000
Stamp Duty $0.000
Indicative Total $1001199.000

[Gingerbread]

Business Spectator agrees Watty.Deal-starved private equity operators and investment banks might think this morning about putting Qantas Airways high on their agenda. If, after 21 days of negotiations and a possible arbitration hearing, Qantas can’t obtain a deal with its workforce that enables it to be competitive then maybe it's time for another group to operate the airline.

After all, Qantas directors in 2007 recommended a $5.60 bid from a private equity group, but it was narrowly rejected by shareholders. The bid was highly leveraged and the subsequent global financial crisis might have seen a private equity-owned Qantas go under. But the shares closed on Friday at $1.54, 62 per cent down from the offer price in 2007.

[1a sound asleep]

There goes that plan

Share price up over 2% this morning and its been open 15 minutes :sad::mad:

[Howard Hughes]

VBA up 6.94% :ok:

QAN now up 5.94% :eek:

[The The]

QAN up 5.5% - the start of a play in motion?

[mcgrath50]

Everyones buying just before the private equity bid hits!

[unionist1974]

Or they see that AJ has turned the corner , no PIA for a while .

[1a sound asleep]

1.65 +0.11‎ (6.80%‎) 31 Oct 12:59pm AEST

Seems somebody loves Alan Joyce:confused:

[stillalbatross]

Any private equity firms are going to go in with high debt and hack it to bits to get those debt levels down. Anyone on here working for Qantas who thinks a takeover would be good for employees, should maybe look at the history of private equity takeovers.

Unless in an airline environment they are linked with an employee buyout which in itself is also mired in problems.

[dreamjob]

I don't think this is due to a takeover bid.

People are buying because they know there will be no more disruptions and the there's little the unions can do from this point on.

So in their minds the share price can only go up even though the company is dead. :sad:

[Howard Hughes]

Slipped back slightly to +3.88%, still a lot more buyers than sellers though!

[blueloo]

People are buying because they know there will be no more disruptions and the there's little the unions can do from this point on.


Ha Ha Ha


Are you really so naive to believe this?

[dreamjob]

With respect to PIA, according to FWA, I thought that was the case?

[QF94]

At the current share price, the value of the company is less than their cash reserves of $3.5billion.

Watch out for the syndicate of Geoff Dixon and John Singleton. They're Australian, they have the money and can buy the company, delist it and then break it apart as they wish. FWA or no FWA. Government or no government. Unions or no unions.

The sale would have gone ahead in 2007 if not for a late submission by a US basd investment mogul.

The game isn't over yet. This is the first 1/4.

[DutchRoll]

I have a bridge I'd like to sell you, NewPiper.

Regularly painted, accompanied by profitable bridge-climbing business. I will offer it to you exclusively for a bargain basement price......

[airtags]

Equities have much better targets than Q at the moment - however probability rises slightly with lowering of interest rates, but..........the risk matrix associated with Q makes a number of otherwise potentials happy to adopt the "we'll wait on the sideline bench" approach.

The 5 major shareholders are staying in only because they are well past point of safe return. Way too early in the game for a serious run.

AT

[1a sound asleep]

The 5 major shareholders are staying in only because they are well past point of safe return.

80% of shareholders wont sell below $3 unless the share price drops to below about 50 cents. So its a mute point

[Happy Gilmore]

Troll in the House !!

[schlong hauler]

Wrong Newpiper. The action over the weekend has only highlighted what the sale act intent was legislated to protect. Australia's economic and strategic interests. You can't have a rogue board in charge of an entity such as the national flag carrier enforcing their will in the guise of market forces without due regard for the national interests. Disrupting the mining, tourism and general business sectors is one thing but to interrupt the functioning of the economy with reckless abandon for days is not in the national interests. I am damn sure that the people at the Dept. of Defense are reassessing some of their own strategic contingency plans in light of this. Imagine if there had been a national or international emergency of grave proportions without the necessary assets available at short notice? i know emergency powers could be invoked but the overall reliance on Qantas' capability will now be questioned. The airline has always been an integral part of Australia's strategic capability. Virgin is not up to that task. How many engineers, pilots and operational back ground staff have had previous and or current military careers including current reservists. Read some history. There are reasons far beyond a share price for how and why Qantas and its strategic capability must be protected.

[obira]

It's not 98% of shareholders at all.

It's the holders of 98% of shares. What's more the ones voting are not even the beneficial owners of the shares.

We are! It's our money that is invested in the funds which they manage on our behalf.

[QF94]

AJ will not be revisiting shutting down the airline again. He has used 8 lives with that gag.

Should the airline start to fade away, the emergency laws should be invoked, QANTAS taken over by the government, and the board removed for reckless behaviour and charged as such (but we know that will never happen) and keep the airline in government hands and never be held to ransom ever again by a bunch of greedy individuals.

[VBPCGUY]

Qantas management have beaten everyone to a pulp, smashed the unions, share price up, given themselves payrise's

[Back Pressure]

Obira :ok: Precisely.

[QF94]

Qantas management have beaten everyone to a pulp, smashed the unions, share price up, given themselves payrise's

Including the travelling public and the company image. The share price gain is short-term. Once the figures come out about how much AJ's action have cost the company, and the lack of people travelling on QANTAS, domestic included, the share price will come down again.

It's the big end of town propping up the price. They will then sell out and drive the price down because of the readjusted earnings figures and a drop off in forward bookings.

Once again, the Gordon Gecko's are driving the market and destroying companies and livelihoods.

But that's alright. When no one is employed in Australia, or on wages that can't afford to buy anything, where will the investors get their returns from then?

[struggling]

Advertising will not restore QANTAS brand

Marketing experts say QANTAS will not be able to use marketing to restore faith in its brand.

Any plans by Qantas to advertise its way out of the shutdown crisis will be a waste of millions of dollars, with advertising experts saying the damage to the 91-year old brand has inflicted on itself over the course of just four days is beyond the ability of marketing to fix.

Instead, long term watchers of the industry say Qantas should simply abandon trying to rebuild the image of its brand in the mind of consumers in the short term and instead work on changing its culture to focus on passengers rather than the shareholders."I don't think any amount of financial support for the brand is going to make much difference,'' Mr Morris said.
"They have gone from being part of the streetscape of Australian community to being part of the big end of town.''...and said that ‘it may be in the best interests of Qantas to agree to pilot demands and then make them the focus of marketing.’| The Australian (http://www.theaustralian.com.au/media/experts-advertising-will-not-restore-qantas-brand/story-e6frg996-1226183192570)

[maggotdriver]

Wrong Newpiper. The action over the weekend has only highlighted what the sale act intent was legislated to protect. Australia's economic and strategic interests. You can't have a rogue board in charge of an entity such as the national flag carrier enforcing their will in the guise of market forces without due regard for the national interests. Disrupting the mining, tourism and general business sectors is one thing but to interrupt the functioning of the economy with reckless abandon for days is not in the national interests. I am damn sure that the people at the Dept. of Defense are reassessing some of their own strategic contingency plans in light of this. Imagine if there had been a national or international emergency of grave proportions without the necessary assets available at short notice? i know emergency powers could be invoked but the overall reliance on Qantas' capability will now be questioned. The airline has always been an integral part of Australia's strategic capability. Virgin is not up to that task. How many engineers, pilots and operational back ground staff have had previous and or current military careers including current reservists. Read some history. There are reasons far beyond a share price for how and why Qantas and its strategic capability must be protected.

Turn it up schlonghauler! I'm sure Emirates / E t i h a d / QATAR will charter their aeroplanes to ADF if we need them in some Arab/Israeli conflict. What are the chances of that.... How about China Southern if the PRC walk into Taiwan? We wouldn't be pulled into that with our ties with the US, no chance. Wakeup people!

For those of you who can't grasp it, why do you think there isn't a Pacific Brands Act, or BHP Act, or a National Australia Bank Act? The amount of test pilots, FCIs etc in QANTAS and doing reserve work is phenomenal. They would of course be allowed to rush home in the event of a conflict. That other small issue of letting you get 49% of the aeroplanes home might also prove troublesome. You think?! :D

[QF94]

Advertising will not restore QANTAS brand

Marketing experts say QANTAS will not be able to use marketing to restore faith in its brand.

Any plans by Qantas to advertise its way out of the shutdown crisis will be a waste of millions of dollars, with advertising experts saying the damage to the 91-year old brand has inflicted on itself over the course of just four days is beyond the ability of marketing to fix.

Instead, long term watchers of the industry say Qantas should simply abandon trying to rebuild the image of its brand in the mind of consumers in the short term and instead work on changing its culture to focus on passengers rather than the shareholders.

QANTAS advertising? I cannot recall the last time I saw a QANTAS advertisement on TV/Newspaper regarding its product (other than the A380 interior) or its destinations. Jetstar has taken front and centre with all of this. The only advertising of QANTAS has been the disputes and the management shutting down the airline and causing inconvenience to the travelling public, further disenfranchising its staff, getting the government off-side and costing the company more in a few days (not just $wise but its reputation) than any claims the unions were asking for, for the duration of any agreement.

[peuce]

I think if they start running the "choir" ads ... I'll puke!

[HotDog]

As an interested bystander in this saga as it unfolds, I am amazed at the number contributors suffering from Trollitis. If anybody has a different opinion and does'nt go with the flow, is expected to shut up. Bit like question time in parliament!:rolleyes:

[QF94]

peuce,

These are the ads I was thinking of. Use of newer aircraft and its staff. These are great ads.

http://www.youtube.com/watch?v=Kz2GS5aG4C4

I don't know why that posted twice. :confused: