US private equity firm appoints QF chairman
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US private equity firm appoints QF chairman
Another takeover being planned?!! 
From todays Sydney Morning Herald
KKR appoints Qantas chairman Clifford as senior adviser
Miriam Steffens
January 5, 2009
KOHLBERG KRAVIS ROBERTS, the US private equity firm that owns half of Channel Seven and the mining services provider BIS Industries, has flagged possible further expansion in Australia, appointing the Qantas chairman and former Rio Tinto boss Leigh Clifford as a senior adviser.
The buyout firm, whose $US31 billion takeover of RJR Nabisco 20 years ago earned it the monicker Barbarians at the Gate, has been looking for a local business leader to assist its Australian boss, Justin Reizes, with operational experience and advice on investment opportunities. Mr Clifford was one of several senior executives it had contacted last year.
Mr Clifford, who was responsible for deals including the $US38.1 billion takeover of Alcan in his tenure as chief executive at Rio Tinto from 2000 to 2007, "will be an immediate asset to KKR's Australian and international operations", said the firm's co-founder, George Roberts.
The appointment comes more than two years after KKR entered the Australian market, buying the waste services business Cleanaway, which it has since sold, and BIS from Brambles in July 2006. Later that year it spent $3.2 billion buying a half stake in Kerry Stokes's Seven Media Group, which runs Channel Seven and Pacific Magazines.
Mr Clifford's appointment could be the precursor to further investments in the country, particularly in resources and energy. "George [Roberts] has made it clear that he has a great fondness and appetite for Asia and Australia," one industry source said yesterday.
Mr Clifford said shortly after he stepped down at Rio Tinto that, given the Asian commodities boom, it would be "naive to imagine that private equity doesn't show some interest in the mining industry".
However, commodities prices have slumped over the past months because of the global financial crisis and slowing growth in China.
Mr Clifford said yesterday that he was "looking forward to helping identify opportunities for investors while partnering with managers to strengthen businesses in Australia".
The new job for the 61-year-old, who is also a director of Barclays Bank, comes just weeks after he suffered a setback at Qantas, where a merger he had pursued with British Airways was grounded after a disagreement over the ownership ratio.
It was unclear whether he would join the BIS and Seven Media boards.
A KKR spokesman could not give details of protocols governing potential conflicts of interest involving Mr Clifford's role at Qantas. Qantas was the subject of a controversial failed private equity buyout, not involving KKR, in 2007.
Mr Reizes said in a statement that Mr Clifford's experience would bring "immediate and valuable insight for our portfolio companies, particularly BIS".
He was unavailable to comment on KKR's further strategy in Australia yesterday because he was getting married.
From todays Sydney Morning Herald
KKR appoints Qantas chairman Clifford as senior adviser
Miriam Steffens
January 5, 2009
KOHLBERG KRAVIS ROBERTS, the US private equity firm that owns half of Channel Seven and the mining services provider BIS Industries, has flagged possible further expansion in Australia, appointing the Qantas chairman and former Rio Tinto boss Leigh Clifford as a senior adviser.
The buyout firm, whose $US31 billion takeover of RJR Nabisco 20 years ago earned it the monicker Barbarians at the Gate, has been looking for a local business leader to assist its Australian boss, Justin Reizes, with operational experience and advice on investment opportunities. Mr Clifford was one of several senior executives it had contacted last year.
Mr Clifford, who was responsible for deals including the $US38.1 billion takeover of Alcan in his tenure as chief executive at Rio Tinto from 2000 to 2007, "will be an immediate asset to KKR's Australian and international operations", said the firm's co-founder, George Roberts.
The appointment comes more than two years after KKR entered the Australian market, buying the waste services business Cleanaway, which it has since sold, and BIS from Brambles in July 2006. Later that year it spent $3.2 billion buying a half stake in Kerry Stokes's Seven Media Group, which runs Channel Seven and Pacific Magazines.
Mr Clifford's appointment could be the precursor to further investments in the country, particularly in resources and energy. "George [Roberts] has made it clear that he has a great fondness and appetite for Asia and Australia," one industry source said yesterday.
Mr Clifford said shortly after he stepped down at Rio Tinto that, given the Asian commodities boom, it would be "naive to imagine that private equity doesn't show some interest in the mining industry".
However, commodities prices have slumped over the past months because of the global financial crisis and slowing growth in China.
Mr Clifford said yesterday that he was "looking forward to helping identify opportunities for investors while partnering with managers to strengthen businesses in Australia".
The new job for the 61-year-old, who is also a director of Barclays Bank, comes just weeks after he suffered a setback at Qantas, where a merger he had pursued with British Airways was grounded after a disagreement over the ownership ratio.
It was unclear whether he would join the BIS and Seven Media boards.
A KKR spokesman could not give details of protocols governing potential conflicts of interest involving Mr Clifford's role at Qantas. Qantas was the subject of a controversial failed private equity buyout, not involving KKR, in 2007.
Mr Reizes said in a statement that Mr Clifford's experience would bring "immediate and valuable insight for our portfolio companies, particularly BIS".
He was unavailable to comment on KKR's further strategy in Australia yesterday because he was getting married.
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QF Chairmanship and Barclay's Board are his only commercial responsibilities, so KKR advisor should not bite too much into his QF responsibilities, which would be the main concern.
Barclay's might have an issue though.
Overall - probably not a problem for anyone, coz it is all out in the open.
Barclay's might have an issue though.
Overall - probably not a problem for anyone, coz it is all out in the open.
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I wouldnt worry about it to much mate, not whilst everybody is stone cold motherless broke, the last thing you would buy is a Airline. A chain of Pizza restuarants yes, a Airline no.
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I don't think that it will, as Steve Creedy at The Australian wrote;
However the following quote from Business Spectator:'Despite the impact of the global financial crisis on the availability of credit for leveraged transactions, private equity isn’t dead, just dormant. Many of the big funds like KKR are sitting on very large slabs of capital, waiting for the crisis to present once-in-a-generation opportunities.'
Suggests any company that finds itself 'distressed' can quickly become a takeover target and Qantas has a large aircraft order to fund.
Sweet Dreams
....sound warnings bells at Qantas, with unions wary after the failed Airline Partners Australia private equity bid two years ago.
Suggests any company that finds itself 'distressed' can quickly become a takeover target and Qantas has a large aircraft order to fund.
Sweet Dreams
Last edited by struggling; 5th Jan 2009 at 10:50.
