QANTAS- On Market Takeover Offer
Thread Starter
QANTAS- On Market Takeover Offer
I'm going to make a prediction here; "someone" is going to launch an on market takeover offer for Qantas, most probably within hours of the release of the company's report today.
I base this on the sudden jump in the share price on 23rd August which looks to me as if people got interested in the stock around 3.00pm, enough to add about Seven cents to the share price.
I predict that the Company will produce a disappointing result, do its best to spread more doom and gloom, talk about "difficult market conditions", "unfair competition from the Middle East", etc. et. etc.
The so called bright spot will be the announcement of its intentions to start a premium brand carrier in Asia, and further expand Jetstar, both of which would appear to thinking members of the public to be as attractive a strategy as the kiss of death.
Members of the aviation community will castigate Qantas management as inept.
..Then the predator will strike, only this time he isn't paying $5.10.......
The money will be borrowed, most probably from America where interest rates are around zero, and the bid will be struck at maybe (guess) $2.00.
The predator gets control, stops the Asia push, rolls jetstar into Qantas, buys or leases B777, does all the other stuff they were going to do if the APA bid succeeded and laugh all the way to the bank.
This is pure speculation on my part, but I have no other answer to the question;
"If the underlying value of QANTAS was at least $5.10 in 2008, why is it only $1.50 or so now? How did it get that way, especially since the Australian economy has not been knocked around by the GFC ?"
I base this on the sudden jump in the share price on 23rd August which looks to me as if people got interested in the stock around 3.00pm, enough to add about Seven cents to the share price.
I predict that the Company will produce a disappointing result, do its best to spread more doom and gloom, talk about "difficult market conditions", "unfair competition from the Middle East", etc. et. etc.
The so called bright spot will be the announcement of its intentions to start a premium brand carrier in Asia, and further expand Jetstar, both of which would appear to thinking members of the public to be as attractive a strategy as the kiss of death.
Members of the aviation community will castigate Qantas management as inept.
..Then the predator will strike, only this time he isn't paying $5.10.......
The money will be borrowed, most probably from America where interest rates are around zero, and the bid will be struck at maybe (guess) $2.00.
The predator gets control, stops the Asia push, rolls jetstar into Qantas, buys or leases B777, does all the other stuff they were going to do if the APA bid succeeded and laugh all the way to the bank.
This is pure speculation on my part, but I have no other answer to the question;
"If the underlying value of QANTAS was at least $5.10 in 2008, why is it only $1.50 or so now? How did it get that way, especially since the Australian economy has not been knocked around by the GFC ?"
Join Date: Aug 2011
Location: goulburn
Posts: 393
Likes: 0
Received 0 Likes
on
0 Posts
Seems the Federal Govt suspect the same thing and have indicated they WILL NOT support a private equity bid and will exercise all powers available to stop it.
About time there was some action from Canberra on this debacle and hope that ASIC are getting ready as well (but I doubt it).
About time there was some action from Canberra on this debacle and hope that ASIC are getting ready as well (but I doubt it).
Join Date: Dec 1999
Location: Metung RSL or Collingwood Social Club on weekends!
Posts: 645
Likes: 0
Received 0 Likes
on
0 Posts
Whenever a "big announcement" is about to be made (this was forecast months ago) the market always reacts on the eve. Never been any different Sunny!
Thread Starter
If a bid appears, would there be shareholders who might think that the airline is being knocked down at bargain rates? Might they perhaps launch court action to get a look at the books? Just asking.....
Andrew Sisson, schoolmate, are you watching? Were you in DeCrespignys year?
Andrew Sisson, schoolmate, are you watching? Were you in DeCrespignys year?
I have been telling people to buy QAN shares. Market Cap is only $ 3.4 B. If every QF employee bought $45000 worth of shares we would have total control of the company with majority control. I know it wont happen. But the reality is there's enough employees and genuine Australian's that would want to save Qantas. Oh well, wait for the 
to hit the fan
I suspect that they are deliberately keeping the share price low. The fact that there has been an almost doubling in profit and still no dividend makes me think that they dont want people buying the shares
to hit the fanI suspect that they are deliberately keeping the share price low. The fact that there has been an almost doubling in profit and still no dividend makes me think that they dont want people buying the shares
Last edited by 1a sound asleep; 23rd Aug 2011 at 23:25.
Join Date: Mar 2010
Location: Smog Central
Posts: 97
Likes: 0
Received 0 Likes
on
0 Posts
Thoughts everyone???
Join Date: Sep 2010
Location: Malacoota
Posts: 14
Likes: 0
Received 0 Likes
on
0 Posts
Of course. The company has been downgrading earnings, profit, draining money to other areas of the business.
Makes the sale to an Asian Carrier to "tie in" the business and promote growth with in Qantas.
Just a matter of time.
Makes the sale to an Asian Carrier to "tie in" the business and promote growth with in Qantas.
Just a matter of time.
Join Date: Apr 2008
Location: On a long enough timeline the survival rate for everyone is zero
Posts: 731
Likes: 0
Received 0 Likes
on
0 Posts
sound asleep, control doesn't need to be 51%. Think newcorp & the Murdoch's - the family only control around 14% of the shares, yet they exert total control over the company.
For takeover control, a block needs 10% + 1 share (90% allows compulsory acquisition). Given that many employees already have shares, this number could be as low as $5000 to gain a blocking stake.
It could be a very interesting day. The pilots & engineers have not played their assigned roles in this pantomime. They were assigned the roll of the "airline wrecker", to down tools & cause immense & terminal damage to the longhaul brand, thus lowering the shareprice significantly. This would of course allow raiders to pick up the carcass for pennies on the dollars.
This is all about exploiting, and widening the gap between price & value. Why would a former CEO & CFO be interested in the operation? Because they understand this pricing/value differential.
For takeover control, a block needs 10% + 1 share (90% allows compulsory acquisition). Given that many employees already have shares, this number could be as low as $5000 to gain a blocking stake.
It could be a very interesting day. The pilots & engineers have not played their assigned roles in this pantomime. They were assigned the roll of the "airline wrecker", to down tools & cause immense & terminal damage to the longhaul brand, thus lowering the shareprice significantly. This would of course allow raiders to pick up the carcass for pennies on the dollars.
This is all about exploiting, and widening the gap between price & value. Why would a former CEO & CFO be interested in the operation? Because they understand this pricing/value differential.
breakfastburrito - we are on the same track. We need people to stop paying into super and start buying QAN shares. This is the only way to take control of these pigs with mouths in the trough
About time all the unions started pushing people into buying shares
About time all the unions started pushing people into buying shares
Join Date: Dec 2007
Location: The Glade
Posts: 44
Likes: 0
Received 0 Likes
on
0 Posts
Beginning of The Endgame
Today will more than likely be the beginning of the endgame for Qantas.
Hedge funds,annual report,forensic accounting,industrial disputes,legal action,spin and yesterdays late jump in share price.All parts of the puzzle.
When the dust settles and the deceptions have been exposed who will be held accountable?
Hedge funds,annual report,forensic accounting,industrial disputes,legal action,spin and yesterdays late jump in share price.All parts of the puzzle.
When the dust settles and the deceptions have been exposed who will be held accountable?
Joyce is a pawn, and he'll take the fall.
He will be rotting in a slammer after the citizens of this great country scream enough. From all accounts, he won't mind picking up the soap either
Australians are sick of this government, sick of corporate bullies, and sick of multi million dollar CEO remuneration packages.
Labor will latch on to Qantas to appear to be doing something and to take the heat off them with the bad policy decisions.
Gillard will use it as a way to make a comeback in the polls and to prove she still holds her labor roots.
Watch this space.
He will be rotting in a slammer after the citizens of this great country scream enough. From all accounts, he won't mind picking up the soap either
Australians are sick of this government, sick of corporate bullies, and sick of multi million dollar CEO remuneration packages.
Labor will latch on to Qantas to appear to be doing something and to take the heat off them with the bad policy decisions.
Gillard will use it as a way to make a comeback in the polls and to prove she still holds her labor roots.
Watch this space.
And if that's what it takes to save Qantas bring it on. Never fear, this government will be popular for only so long until the next insulation/school building/carbon tax/asylum seeker issue comes along.
Maybe Elizabeth Knight has been reading PPRUNE
Time is ripe for a Qantas bid
Time is ripe for a Qantas bid
Time is ripe for a Qantas bid
August 24, 2011 - 12:06PM
The rumour that Qantas is being eyed as an acquisition target by private equity funds gained root yesterday afternoon because the environment is fertile for just such a move.
That doesn’t mean the rumour is right - despite several hours of investigation yesterday no one seemed to be able verify that it had any substance. However it can’t be seriously dismissed because it is all too plausible.
There is plenty of value to unlock in Qantas while it is trading at these levels - particularly if you split the airline into its brands - Qantas, Jetstar and Frequent Flyers.
Advertisement: Story continues below
All the analysts understand it is trading below its value - and have had buy recommendations on the stock for weeks.
But large and small investors alike ignore all this because they perceive it has more downside - if or when the industrial action from pilots and/or engineers eventuates.
The investors are probably right. Historically industrial action that has seriously affected airline schedules has had a very negative impact on the share price.
With each time Joyce makes a public appearance he further cements this preparedness to stay in the trenches opposite his unhappy work force rather can capitulate to what he considers to be an unrealistic set of demands.
Qantas is now fully committed to a growth strategy that involves setting up new airlines in Asia and shedding 1000 staff to suit the new slimline Qantas brand. This is despite the reasonably strong earnings for the year it released yesterday.
The workforce will seize on the solid result to argue that the airline does not need to cut labour costs and relocate capital to cheaper geographies.
Joyce will be hoping the positive result consolidates his position as the company's leader and fortifies his credentials to deliver on the new strategy.
Some of today’s early share price gains - however - will be the lingering hope from investors that the shadowy talk of takeover might contain some grain of truth.
Certainly the time is ripe. Once Joyce goes on a spending spree to equip his two fledgling airlines it loses its appeal to the buy-in-gear up-refloat private equity brigade.
Read more: Time is ripe for a Qantas bid
August 24, 2011 - 12:06PM
The rumour that Qantas is being eyed as an acquisition target by private equity funds gained root yesterday afternoon because the environment is fertile for just such a move.
That doesn’t mean the rumour is right - despite several hours of investigation yesterday no one seemed to be able verify that it had any substance. However it can’t be seriously dismissed because it is all too plausible.
There is plenty of value to unlock in Qantas while it is trading at these levels - particularly if you split the airline into its brands - Qantas, Jetstar and Frequent Flyers.
Advertisement: Story continues below
All the analysts understand it is trading below its value - and have had buy recommendations on the stock for weeks.
But large and small investors alike ignore all this because they perceive it has more downside - if or when the industrial action from pilots and/or engineers eventuates.
The investors are probably right. Historically industrial action that has seriously affected airline schedules has had a very negative impact on the share price.
With each time Joyce makes a public appearance he further cements this preparedness to stay in the trenches opposite his unhappy work force rather can capitulate to what he considers to be an unrealistic set of demands.
Qantas is now fully committed to a growth strategy that involves setting up new airlines in Asia and shedding 1000 staff to suit the new slimline Qantas brand. This is despite the reasonably strong earnings for the year it released yesterday.
The workforce will seize on the solid result to argue that the airline does not need to cut labour costs and relocate capital to cheaper geographies.
Joyce will be hoping the positive result consolidates his position as the company's leader and fortifies his credentials to deliver on the new strategy.
Some of today’s early share price gains - however - will be the lingering hope from investors that the shadowy talk of takeover might contain some grain of truth.
Certainly the time is ripe. Once Joyce goes on a spending spree to equip his two fledgling airlines it loses its appeal to the buy-in-gear up-refloat private equity brigade.
Read more: Time is ripe for a Qantas bid
Join Date: Aug 2007
Location: AUSTRALIA
Posts: 100
Likes: 0
Received 0 Likes
on
0 Posts
GAAM, Fly Lease
Now to some fancy flying by a stellar cast of local investors who have been the force behind the country’s second-biggest aircraft leasing business Global Aviation Asset Management and have now managed to sell it to US-listed FLY Leasing for $US1.4 billion. FLY is the former Babcock and Brown aviation leasing business and boasts former B&B execs Trevor Lowensohn and Phil Brown as its advisors. The merry cast at GAAM cashing in on the deal include former Qantas boss Geoff Dixon, his former CFO and former Leighton CFO Peter Gregg, former Allco boss David Coe, John Singleton and private equity investor Mark Carnegie. This team is now looking at multiple investment opportunities and Dixon has told The Australian Financial Review that they are looking to put together a bid to take over the management of the $6 billion portfolio of RBS Aviation Capital, the fourth-largest aviation leasing company in the world.
Now to some fancy flying by a stellar cast of local investors who have been the force behind the country’s second-biggest aircraft leasing business Global Aviation Asset Management and have now managed to sell it to US-listed FLY Leasing for $US1.4 billion. FLY is the former Babcock and Brown aviation leasing business and boasts former B&B execs Trevor Lowensohn and Phil Brown as its advisors. The merry cast at GAAM cashing in on the deal include former Qantas boss Geoff Dixon, his former CFO and former Leighton CFO Peter Gregg, former Allco boss David Coe, John Singleton and private equity investor Mark Carnegie. This team is now looking at multiple investment opportunities and Dixon has told The Australian Financial Review that they are looking to put together a bid to take over the management of the $6 billion portfolio of RBS Aviation Capital, the fourth-largest aviation leasing company in the world.