Qantas takeover failure worth $1.5 billion
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Qantas takeover failure worth $1.5 billion
THE fund manager credited with sparking a shareholder revolt against the Qantas private equity bid says his resistance helped deliver a collective gain to shareholders of $1.5 billion.
At the time of the $11.1 billion takeover, Paul Fiani was a fund manager with the investment bank UBS, with authority for about 6 per cent of Qantas (qan.ASX:Quote,News) stock.
While he was not permitted to comment on the bid while it was active, Mr Fiani's passive resistance along with opposition from Balance Equity Management's Andrew Sissons, helped torpedo the bid.
"I was certainly very pleased the deal failed," Mr Fiani told ABC radio.
"My former clients are $100 million better off. We held $700-million of the stock at the time, and collectively Qantas shareholders are $1.5-billion better off."
During the bid, UBS' corporate finance arm was advising Qantas on the board-endorsed deal, while Mr Fiani's was simultaneously resisting it.
Mr Fiani has since left UBS to run his own boutique fund management outfit.
"I feel like I can look after my clients' interests better now," Mr Fiani said.
"I felt that my position had become untenable at UBS, which was, you know, pretty disappointing after 11 years with the firm."
Mr Fiani also criticised the Qantas board's corporate governance standards during the bid.
"I would have liked to see all shareholders given better information and for the company to more broadly, consult with the owners, regarding value of the company.
"We were the largest shareholder and I was unable to meet with the chairman until after the board had already recommended the bid."
The Qantas share price has improved significantly since the Macquarie Bank-led takeover failed, and in the last month have generally traded in the $5.80 - $6.00 band.
At the time of the $11.1 billion takeover, Paul Fiani was a fund manager with the investment bank UBS, with authority for about 6 per cent of Qantas (qan.ASX:Quote,News) stock.
While he was not permitted to comment on the bid while it was active, Mr Fiani's passive resistance along with opposition from Balance Equity Management's Andrew Sissons, helped torpedo the bid.
"I was certainly very pleased the deal failed," Mr Fiani told ABC radio.
"My former clients are $100 million better off. We held $700-million of the stock at the time, and collectively Qantas shareholders are $1.5-billion better off."
During the bid, UBS' corporate finance arm was advising Qantas on the board-endorsed deal, while Mr Fiani's was simultaneously resisting it.
Mr Fiani has since left UBS to run his own boutique fund management outfit.
"I feel like I can look after my clients' interests better now," Mr Fiani said.
"I felt that my position had become untenable at UBS, which was, you know, pretty disappointing after 11 years with the firm."
Mr Fiani also criticised the Qantas board's corporate governance standards during the bid.
"I would have liked to see all shareholders given better information and for the company to more broadly, consult with the owners, regarding value of the company.
"We were the largest shareholder and I was unable to meet with the chairman until after the board had already recommended the bid."
The Qantas share price has improved significantly since the Macquarie Bank-led takeover failed, and in the last month have generally traded in the $5.80 - $6.00 band.
There were a few 'special cases'.
