Qantas Shares Decline on Concern Macquarie-Led Buyout May Fail
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Qantas Shares Decline on Concern Macquarie-Led Buyout May Fail
Qantas Shares Decline on Concern Macquarie-Led Buyout May Fail
By Joyce Moullakis
March 13 (Bloomberg) -- Shares of Qantas Airways Ltd., Australia's largest airline, fell for to a three-month low on concern an A$11.1 billion ($8.7 billion) Macquarie Bank Ltd.-led buyout will be blocked by shareholders seeking a higher offer.
The stock declined 11 cents to A$5.05 at 11:50 a.m. in Sydney, 7.3 percent below the A$5.45 a share offer from Macquarie Bank, Texas Pacific Group and Allco Equity Partners.
By Joyce Moullakis
March 13 (Bloomberg) -- Shares of Qantas Airways Ltd., Australia's largest airline, fell for to a three-month low on concern an A$11.1 billion ($8.7 billion) Macquarie Bank Ltd.-led buyout will be blocked by shareholders seeking a higher offer.
The stock declined 11 cents to A$5.05 at 11:50 a.m. in Sydney, 7.3 percent below the A$5.45 a share offer from Macquarie Bank, Texas Pacific Group and Allco Equity Partners.
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I have heard a rumour that stockbrokers are being offered $750 for every client they persuade to sell their QF shares .
If this is true it must only be for large shareholders..then again maybe not.
If this is true it must only be for large shareholders..then again maybe not.
The $750 is the maximum ..see on www.asx.com .. the fifth supplementary statement.
available here
Got another begging letter in the mail today. How long till the big sellers decide?
available here
Got another begging letter in the mail today. How long till the big sellers decide?
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Fair call Buster because if the bid fails they might drop to $3.00 or who knows....
You can use the money to pay for your heating bill this mel winter...lol...
If your other half knows how much you made she might spend some time in those seconds shops in Brunswick rd (Is that the one all the hosties talk about?)
You can use the money to pay for your heating bill this mel winter...lol...
If your other half knows how much you made she might spend some time in those seconds shops in Brunswick rd (Is that the one all the hosties talk about?)
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the reason they wont sell is because they believe they are undervalued.
APA are buying the company to strip it lean and put it back on the market at a lot more than $5.60
so if you got your shares for free and crying that they may go back to $3.00 at least you may be able to keep your job. or would you pefer the $2,600 minus capital gains tax.
i must repeat the companys that will not sell believe the shares are worth more in the near future
APA are buying the company to strip it lean and put it back on the market at a lot more than $5.60
so if you got your shares for free and crying that they may go back to $3.00 at least you may be able to keep your job. or would you pefer the $2,600 minus capital gains tax.
i must repeat the companys that will not sell believe the shares are worth more in the near future
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If you have had the shares for a while then the CGT is significant. Its another reason why the deal is not all it is cracked up to be; especially for people who like the dividends.
If it fails I can't see how Dixon and Gregg can stay at QF. Nor most of the Board.
If it fails I can't see how Dixon and Gregg can stay at QF. Nor most of the Board.
Evertonian
Point of order domo. If you are referring to staff shares being free, then I believe they were actually in lieue of bonuses I think...(QF staff will have a better idea of this than me)
Heating bill? Is that...oh my God ...thats sooo funny lowerlobe. ..I ..am...laughing..so ...hard...can't .....type.. ..anymore....
Believe me, she knows how much I make & she knows that fighting over Stella McCartney at Target is the best she'll do...(ie, she didn't bother)
Heating bill? Is that...oh my God ...thats sooo funny lowerlobe. ..I ..am...laughing..so ...hard...can't .....type.. ..anymore....
Believe me, she knows how much I make & she knows that fighting over Stella McCartney at Target is the best she'll do...(ie, she didn't bother)
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so if you got your shares for free and crying that they may go back to $3.00 at least you may be able to keep your job. or would you pefer the $2,600 minus capital gains tax
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Buying in A falling Market
I am hanging onto my shares.
If the deal fails and the share price plummets I will be buying more shares at a hugely discounted price.
I am quite happy to receive the income from the dividends.
The stock price will eventually rebound after the overselling and there will be capital gain eventually.
I am quite happy to wait.
If the deal fails and the share price plummets I will be buying more shares at a hugely discounted price.
I am quite happy to receive the income from the dividends.
The stock price will eventually rebound after the overselling and there will be capital gain eventually.
I am quite happy to wait.
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Buster..I think Sydney is cold enough during winter and Mrs Lobe and I have had a good look at the sunshine coast of queensland when the rugrats have flown the coop.Lots of fishing spots and the weather is fantastic.
As far as my other half is concerned she is devestated at the news that Myers is closing it's Bourke St store as she loves it when we are down in Mexico. I go out to the bikes at Phillip Island or the cars and she has retail therapy.
ASs far as the shares are concerned I'm with captainrats.The company is in good shape and a sound invetsment or APA would not be bothering .The shares will certainly fall if the takeover fails but then Darth will probably go as well and that can only be good for the shares long term.
As far as my other half is concerned she is devestated at the news that Myers is closing it's Bourke St store as she loves it when we are down in Mexico. I go out to the bikes at Phillip Island or the cars and she has retail therapy.
ASs far as the shares are concerned I'm with captainrats.The company is in good shape and a sound invetsment or APA would not be bothering .The shares will certainly fall if the takeover fails but then Darth will probably go as well and that can only be good for the shares long term.
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Devil's advocate here for a minute...
There are more than a few pilots here talking about hanging onto their shares. Presumably that means that they agree with Mr Dixon when he says that the share market has undervalued QANTAS for years.
The reason that APA has given for offering a price so far above what everyone else has thought the company is worth is that they think that it's a great business with a fantastic management team and a good plan.
Presumably those who won't sell their shares (on financial grounds, not on principle) not only agree with this - in fact, they think the company is worth even more!
So can I infer from that that despite all the grizzling about every initiative QANTAS management takes (cost cutting, J*, you name it, no one here seems to like any of it), that you accept that these plans mean that the airline is STILL undervalued - even at $5.50+ ??
And let's be honest with ourself - it's the core business and the quality of management and their strategy that investment professionals look at. Quality of pilots and friendliness of cabin crew are not value drivers in the eyes of investors per se (you need them, can't run the business without them, but they aren't factored into the share price).
So it seems that we're left with G.Dixon and his management team and their strategy being key drivers of value - as perceived by investors, anyway.
Anyone here prepared to accept that? Anyone prepared to support the argument that without Jetstar, without the cost efficiencies, without the fuel levies and all the other initiatives - the shares would be worth nowhere near $5??
Seems to me that you can't have it both ways. If you think Dixon and his cronies have trashed the airline, surely you can't also argue that (with the share price up more than 50% in a year) that it's still undervalued?
Not holding my breath, but interested in seeing how both positions can be justified simultaneously....
SW
There are more than a few pilots here talking about hanging onto their shares. Presumably that means that they agree with Mr Dixon when he says that the share market has undervalued QANTAS for years.
The reason that APA has given for offering a price so far above what everyone else has thought the company is worth is that they think that it's a great business with a fantastic management team and a good plan.
Presumably those who won't sell their shares (on financial grounds, not on principle) not only agree with this - in fact, they think the company is worth even more!
So can I infer from that that despite all the grizzling about every initiative QANTAS management takes (cost cutting, J*, you name it, no one here seems to like any of it), that you accept that these plans mean that the airline is STILL undervalued - even at $5.50+ ??
And let's be honest with ourself - it's the core business and the quality of management and their strategy that investment professionals look at. Quality of pilots and friendliness of cabin crew are not value drivers in the eyes of investors per se (you need them, can't run the business without them, but they aren't factored into the share price).
So it seems that we're left with G.Dixon and his management team and their strategy being key drivers of value - as perceived by investors, anyway.
Anyone here prepared to accept that? Anyone prepared to support the argument that without Jetstar, without the cost efficiencies, without the fuel levies and all the other initiatives - the shares would be worth nowhere near $5??
Seems to me that you can't have it both ways. If you think Dixon and his cronies have trashed the airline, surely you can't also argue that (with the share price up more than 50% in a year) that it's still undervalued?
Not holding my breath, but interested in seeing how both positions can be justified simultaneously....
SW
Evertonian
Lobee...Once things cross the Murray, that's when everything goes awry! Tell yer Missus that Myer will still be there when she comes down to spend your hard earned! (I know its a must for the shop-starved La-tees from SYD) They are closing the Lonsdale St store, not the Bourke St one. Basically, the store will be halved. (Doesn't mean her shopping bill will be 50% less on the next visit though)
As for Capitalist Gambling...I may be wrong here (I was once before) but...isn't there an inherant risk to hanging on to your shares during a takeover? Can't they, APA, dilute the shares to the point of being worthless? Isn't that what happened at ANZ when Herr Clarke came galloping in & SQ's shares lost value & percentage?
Someone cleverer than me can explain it better I'm sure...
As for Capitalist Gambling...I may be wrong here (I was once before) but...isn't there an inherant risk to hanging on to your shares during a takeover? Can't they, APA, dilute the shares to the point of being worthless? Isn't that what happened at ANZ when Herr Clarke came galloping in & SQ's shares lost value & percentage?
Someone cleverer than me can explain it better I'm sure...
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The Institutions are holding out for more, it won't happen and they will sell @ $5.60 anyway. Qantas will have new owners, Geoff will get his golden handshake and we'll see SIA - er,sorry,Tiger Airways early 2008.
In the meantime Buster, I see we still have the old timer Mick Malthouse and you still have your old timer Kevin Sheedy
and they reckon interesting times ahead in the aviation industry.
I think another 10 years before a flag graces Windy Hill or Victoria Park (Yeah, I know but I like living in the past!!)
In the meantime Buster, I see we still have the old timer Mick Malthouse and you still have your old timer Kevin Sheedy
and they reckon interesting times ahead in the aviation industry.I think another 10 years before a flag graces Windy Hill or Victoria Park (Yeah, I know but I like living in the past!!)
Evertonian
Whiskery! Crikey, where've you been?
Yes, the soggy old farts are still in place. For some, inexplicable reason, me ol' mate Eddie added a few years to Malthouses contract. I think he thought Essendon were going to make a play for him...
As if!
No, last year for Sheeds I'd say. Daniher out of contract at Melbourne after this one & I reckon the time is right to bring him back into the fold. Finals finish though & perhaps a flag sooner, rather than later.
Amos!
Don't make me put you back on the naughty list again!
Yes, the soggy old farts are still in place. For some, inexplicable reason, me ol' mate Eddie added a few years to Malthouses contract. I think he thought Essendon were going to make a play for him...
As if!No, last year for Sheeds I'd say. Daniher out of contract at Melbourne after this one & I reckon the time is right to bring him back into the fold. Finals finish though & perhaps a flag sooner, rather than later.
Amos!
Don't make me put you back on the naughty list again!
