APA Bid fails to get 50% (Merged)

[lowerlobe]

story in ninemsn web site sunday may 6th

Qantas acceptance approval 'unlikely'
Sunday May 6 11:34 AEST
The takeovers umpire is unlikely to clear the way for a private equity consortium's bid for Qantas, with the uncertainty surrounding the offer also raising questions about the future position of the airline's chiefs, analysts say.

The fate of the Airline Partners Australia (APA) consortium's $11.1 billion takeover bid for Australia's largest airline hangs in the balance after a large US hedge fund offered its shares to the group after an important deadline.

The bid effectively failed on Friday night when shareholder acceptances did not reach the 50 per cent acceptance level required to extend the offer by the 1900 AEST deadline.

APA is now applying to the Takeovers Panel to allow the belated acceptance from the US hedge fund, which the consortium believes now gives it claim to 50.6 per cent of Qantas shares, representing 58 per cent of shareholders in Australia's national carrier.

But the panel, which mediates in takeover issues, is unlikely to accept the late acceptance as it would set a difficult precedent, an analyst says.

"I think the Takeovers Panel faces a very difficult decision," Shaw Stockbroking analyst Brent Mitchell told ABC television.

"There is no previous precedents and if they allow this to continue they're setting a precedent that they may not want to honour in the future, so obviously I think it's more likely to stop the bid at this point and not allow it to continue."

Under takeovers law, passing the 50 per cent threshold would have given APA two weeks breathing space to secure the 70 per cent it needs for the offer to fully succeed.

The uncertainty over APA's bid has also put a big question mark over the future of Qantas chairman Margaret Jackson and chief executive officer Geoff Dixon, strong supporters of the bid, said Tim Elliott from MM&E Capital.

[Captain Gidday]

CEO Geoff Dixon is another matter. Yes, he was part of the bidding team, but he's also been a very effective CEO.

He can and should stay.

Roamingwolf. Obviously you don't work for Qantas. The 35000 general staff in the Qantas Group all know that is not true.

[grrowler]

Nice analysis chockchucker, you happen to watch ABC's Inside Business?

[roamingwolf]

captain gidday,
Mate I do work for the rat but only posted that from the net and i can assure you I do not go along with that part of the story.that was written by Terry MCrann

I only know of probably one person who posts here who hasn't bagged him or the whole botched affair but youd have to ask her

[speeeedy]

grrowler,
I thought exactly the same thing regarding chockchuckers post.

A summary of the comments by the guys from MM&E and Shaw rebadged as original thought.

I do agree with most of it however.

[chockchucker]

Actually growler, it was ABC online that I was looking at. Not trying to plagiarise anybody else, just sharing a view held by more than a few.


This is only pprune after all and I'm only a forum subscriber. Not the editor in chief of the Australian Financial Review.

[speedbirdhouse]

Maybe so however you posted their opinions almost verbatum as if they were your own.

[Spanner Turner]

But the panel, which mediates in takeover issues, is unlikely to accept the late acceptance as it would set a difficult precedent, an analyst says.

"I think the Takeovers Panel faces a very difficult decision," Shaw Stockbroking analyst Brent Mitchell told ABC television.




mmmmmmm, a very difficult decision???

Ok kids, which one of the following times occurs BEFORE 7pm 4th MAY 2007?

a) 19:05 4th MAY 2007

b) 18:58 5th MAY 2007

c) 18:59 4th MAY 2007

[chockchucker]

Growler, Speedy and speedbird house.


This is a rumour network forum.


Take a breath and get over it.



I agree with what other people, far more educated than I, have had to say regarding the latest developments in the APA takeover bid. I didn't cut and paste anybody's written material from another media source into this forum. Just recalled from one of many articles I have read on this topic today.


If you're Qantas staff members, then I would be far more concerned with what announcements are made from the takeover panel, Qantas board, and APA tomorrow. Rather than whether or not I'm a private equity takeover bid expert. I'm not but, I do feel I have the right to express what I believe and also to articulate what others may have said to support such beliefs on this rumor network.


If you guys can't handle that you should quite your day job and get a gig on Media Watch.


Personally, I think you'd be much better sticking to piloting aircraft.

[Keg]

Perhaps this is dead and buried after all!

http://www.smh.com.au/news/business/...390122833.html

Qantas bid sunk by panel

May 6, 2007 - 3:27PM
The Takeovers Panel has effectively blocked the private equity consortium's takeover bid for Qantas, putting an end to the $11.1 billion deal.
The takeovers umpire has refused to look at the matter after the Airline Partners Australia (APA) consortium asked it to allow a late acceptance for the offer, which would have let the bid proceed to the next stage.
APA has indicated that it intends to seek an urgent review of the decision, the panel said.
The fate of the takeover bid for Australia's largest airline has hung in the balance since Friday, when a large US hedge fund offered its shares to the group after an important deadline.
The bid effectively failed on Friday night when shareholder acceptances did not reach the 50 per cent acceptance level required to extend the offer by the 1900 AEST deadline.
APA applied to the Takeovers Panel to allow the belated acceptance from the US hedge fund, which the consortium believed gave it claim to 50.6 per cent of Qantas shares.
"The panel has decided not to commence proceedings in relation to APA's application," the panel said in a statement today.
The decision effectively scuttles APA's takeover offer for the airline.

They'll be back though. It may be a few months but they'll be back! In the mean time, it's time to party!

[ANstar]

Seems the takeover panel aren't even going to take a look

The Takeovers Panel has effectively blocked the private equity consortium's takeover bid for Qantas, putting an end to the $11.1 billion deal.
The takeovers umpire has refused to look at the matter after the Airline Partners Australia (APA) consortium asked it to allow a late acceptance for the offer, which would have let the bid proceed to the next stage.

http://www.smh.com.au/news/business/...390122833.html

[chockchucker]

Sadly, I think you're right holic & Keg. The battle may be over. However, the war may have just only begun.

Hopefully, they'll look elsewhere to invest other peoples money and leave Qantas be.Wishful thinking on my part perhaps.

[lowerlobe]

"APA has indicated that it intends to seek an urgent review of the decision, the panel said".....

Yep,as I said just like a certain Yacht club and the America's cup.If you can't win on the course take it to the courts....

[lowerlobe]

The other problem is that the way they have handled this and if they continue to appeal the decision the more amateurish they appear .........

[priapism]

It's a dead duck,

Now let's see the board get a dose of it's own medicine.

[stubby jumbo]

Agree 'lobe.

This whole QF/APA farce must be the laughing stock of the Financial industry worldwide......

You can just imagine the "Gecko-types" in NYC laughing so much at this......that they must be blowing the "powder" out of their ears

Can't wait for tomorrow .

The press conference with the Dame & Darth will be one to tape and replay a few times

.....Scott Rochfort ( of the SMH).....your work has not gone unnoticed.

[gaunty]

Spanner Turner you didn't happen to write the questions for the CASA exams at one stage?

The Takeover Panel had no other alternative available to them, period.

We have learned some lessons from the G Gecko days no matter how hard they try and disguise it, pandering is pandering and the pea and shell game never changes.

Wolfe's "Bonfire of the Vanities" and Sheehan's "Amongst the Barbarians" should be required reading once every ten years.

[B A Lert]

Here is a ssummay of what APA submitted to the Takeover Panel (from the latter's release)

In its application, APA submitted that:

• the Offer should not be allowed to close as a result of one shareholder not
getting his acceptance in on time;

• as far as APA was aware the only person who may be materially affected
by the grant of the orders is Qantas, no Qantas shareholder would be
detrimentally affected by the granting of the order requested and no-one
would suffer any detriment by letting the Offer continue;

• there had been potentially misleading circumstances arising from media
coverage;

• it cannot be said that having the Offer close on 4 May 2007 causes the
acquisition of control over Qantas shares to take place in a efficient,
competitive or informed market;

• extending the Offer period would not deprive shareholders of information
concerning the bidder or the merits of the Offer (in the terms of section
602(b)(i) and (iii));

• shareholders have not had a reasonable opportunity to participate in the
Offer because that opportunity is being denied to them as a consequence
of a single foreign shareholder accepting late;

• the Panel has, in past matters, taken action to promote the interests of
shareholders in receiving and being able to participate in takeover bids;
and

• notwithstanding the late acceptance lodged by the Late Investor, there is a
significant likelihood that APA had over 50% when the Offer closed in any
event (through the operation of clause 7.3 of the Offer terms providing a
relevant interest in all of the shares held by those holders who purported
to accept for only part of their holdings).
Juris

Is 'charlatan' too strong a word to describe APA and its henchmen?

[B A Lert]

To which the Takeover Panel responded:

No unacceptable circumstances

8. There has been extensive coverage by Qantas, APA and the media of the
deadlines in relation to the Qantas bid. The Panel considers that the market was
extremely well informed of the fact that:

• the Qantas bid was due to close by 7pm 4 May 2007;

• if 50% acceptances were received by the deadline the Offer period would

be extended; and

• if the 50% threshold was not obtained by the deadline the bid would close,
and all acceptances would lapse.

9. The Panel notes that, notwithstanding APA’s submission that there is a
significant likelihood that APA had (through the operation of clause 7.3 of the
Offer terms) over 50% when the Offer closed, APA announced to the market on
4 May 2007 that it appeared that acceptances had not reached the 50% level
required to extend the Offer, and that if this was confirmed, the Offer would not
proceed.

10. The circumstances of which APA has complained are in relation to a single
sophisticated shareholder, with a significant interest (4.96%) in Qantas, who
should have been well aware of the closing time and date for the Offer and of
the implications of not meeting that deadline.

11. The Panel does not accept that misleading circumstances have arisen from
media coverage of the Qantas bid that would cause the Late Investor not to be
aware of the deadline and of the implications of not meeting that deadline.

12. The Panel does not accept that the Offer period closing in accordance with the
bid terms (i.e. 50% acceptances not achieved by 7pm, 4 May 2007) and APA’s
public statements that the Offer would not be extended past that closing time
(except if the 50% threshold had been met), deprives Qantas shareholders of
information concerning the bidder or the merits of the Offer.

13. The Panel does not accept that Qantas shareholders have not had a reasonable
opportunity to participate in the Offer or that a single shareholder failing to
deliver its acceptance by the close of the Offer has denied shareholders a
reasonable opportunity to participate in the Offer. Shareholders were well
aware of the deadlines and the implications of not accepting by the deadlines.

14. The Panel notes that, following APA’s announcement of a Panel application, the
Panel executive has received a number of comments from Qantas shareholders
indicating their concern with the bid proceeding, after it had closed in
accordance with the bid terms and APA’s public statements.
Decision

15. In the absence of clear evidence to the contrary, the Panel does not accept that
the Offer period closing in accordance with the bid terms and APA’s public
statements that the Offer would not be extended past the deadline has had an
impact on the efficient, competitive or informed market for Qantas shares, or
gives rise to unacceptable circumstances.

16. For the reasons outlined above, the Panel did not consider that the submissions
in APA’s application provided a sufficient basis for the Panel to commence
proceedings in relation to the application

[peanut pusher]

Justice

Now let the heads roll.

Starting with the biggest so we can get on with running the worlds greatest airline.

Started with Knocking up the P.A. and finished with trying to steal what wasn't his to start with.

The door is open Dickless for your escape.