Gregg, Dixon, Carnegie, Singo make a play on QF
In today's Financial Review Singleton when questioned was quite open about being interested because of the 3 billion cash Qantas has in it's coffers.
Since privatisation Qantas has only EVER been run with the view to making those doing so very, very rich.
Depressing for those of us working here who actually care about the company's future........
Since privatisation Qantas has only EVER been run with the view to making those doing so very, very rich.
Depressing for those of us working here who actually care about the company's future........
Last edited by standard unit; 21st Nov 2012 at 02:24. Reason: Pathological pedantry
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The Contras Shareholding
It now emerges that Dixon and his cronies have a 2% stake in the National Carrier.
No more red wine lunches for Scrotum Face and the leprechaun
No more red wine lunches for Scrotum Face and the leprechaun
Wow! 2%!!!
I guess the leprechaun's next bonus will only get approved by a margin of 94% in favour instead of 96% in favour (like at the AGM before the grounding last year).
I guess the leprechaun's next bonus will only get approved by a margin of 94% in favour instead of 96% in favour (like at the AGM before the grounding last year).
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Is it just me or does the press not seem to make a connection with Joyce's abysmal performance and the Scrotum Face buy out? It's being reported as though Joyce and Clifford's leadership is being challenged by the private eq group, but none seem to mention how awfully convenient it is that 6 years after their first bid fell through, they're still loitering around with a share price has miraculously halved through spectacular failures of management.
Surely, no one could be that bad off their own bat could they? Surely for AJ's sake he was/is part of the whole plan from day dot. Surely?
Surely, no one could be that bad off their own bat could they? Surely for AJ's sake he was/is part of the whole plan from day dot. Surely?
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Surely, no one could be that bad off their own bat could they? Surely for AJ's sake he was/is part of the whole plan from day dot. Surely?
What got me was Gregg has a full time job and surely that should be his priority and certainly he should not be making comments about another organisation. So I searched for any articles regarding Gregg, Dixon etc.
Cookies must be enabled. | The Australian
Qantas club builds rival share stake
A GROUP of private investors keen for a change of strategy in Qantas have purchased a small stake in the airline through a private trust so it would be unable to be detected on the share register and because they believe the shares are significantly undervalued.
The trust is controlled by former Qantas chief executive Geoff Dixon, former chief financial officer Peter Gregg and venture capitalist Mark Carnegie.
Qantas hired Macquarie Group last year as a defence adviser and has kept a close eye on its share register amid speculation the group may purchase a stake and seek to agitate for a change of strategy at the airline.
It is understood the group bought their stake, which is less than 2 per cent, several months ago because they believed the shares were significantly undervalued.
However it also gives them a position to build from for the future.
There is speculation they started buying shares before Qantas announced its alliance with Emirates in September.
The private trust has no involvement with Global Aviation Asset Management, the aviation leasing group in which the three players also have an interest.
Mr Carnegie has been the driver of the discussions with unions and one institution while Mr Gregg is said to have only provided advice during the briefings.
While Mr Dixon is said to have been more distant from the group, he is still an investor in the trust.
Mr Carnegie has been keen to secure backing from union-aligned industry funds to build a strategic stake in the airline but as yet has been unable to garner their support.
Mr Gregg has been conscious of avoiding a conflict with his role as chief financial officer at Leighton Holdings.
It is believed Qantas chairman Leigh Clifford rang Leighton chairman Stephen Johns this week to inquire about Mr Gregg's alleged role in agitating for change at Qantas.
But Leighton has publicly backed Mr Gregg.
Mr Gregg is the only member of the group to have made a public comment, saying this week he had no plans to destabilise Qantas.
The airline's biggest investor, Balanced Equity, and other Qantas investors such as BT have publicly backed chief executive Alan Joyce's strategy for the airline.
The trust is controlled by former Qantas chief executive Geoff Dixon, former chief financial officer Peter Gregg and venture capitalist Mark Carnegie.
Qantas hired Macquarie Group last year as a defence adviser and has kept a close eye on its share register amid speculation the group may purchase a stake and seek to agitate for a change of strategy at the airline.
It is understood the group bought their stake, which is less than 2 per cent, several months ago because they believed the shares were significantly undervalued.
However it also gives them a position to build from for the future.
There is speculation they started buying shares before Qantas announced its alliance with Emirates in September.
The private trust has no involvement with Global Aviation Asset Management, the aviation leasing group in which the three players also have an interest.
Mr Carnegie has been the driver of the discussions with unions and one institution while Mr Gregg is said to have only provided advice during the briefings.
While Mr Dixon is said to have been more distant from the group, he is still an investor in the trust.
Mr Carnegie has been keen to secure backing from union-aligned industry funds to build a strategic stake in the airline but as yet has been unable to garner their support.
Mr Gregg has been conscious of avoiding a conflict with his role as chief financial officer at Leighton Holdings.
It is believed Qantas chairman Leigh Clifford rang Leighton chairman Stephen Johns this week to inquire about Mr Gregg's alleged role in agitating for change at Qantas.
But Leighton has publicly backed Mr Gregg.
Mr Gregg is the only member of the group to have made a public comment, saying this week he had no plans to destabilise Qantas.
The airline's biggest investor, Balanced Equity, and other Qantas investors such as BT have publicly backed chief executive Alan Joyce's strategy for the airline.
Andrew Cleary and James Chessell
The group of former Qantas executives and their co-investors seeking support for a change of strategy at the national carrier has emerged as owning a strategic stake in the airline.
The Weekend Financial Review has learned the consortium has amassed a
shareholding in Qantas, believed to be a stake of between 1 and 2 per cent.
The group of investors includes former Qantas chief Geoff Dixon,
former CFO Peter Gregg, investment banker turned venture capitalist Mark
Carnegie and ad man John Singleton.
The stake has been linked to a holding of similar size being held by Credit
Suisse in London, with the initial entry believed to have been when the stock was trading at $1.15. Qantas last traded at that price in early September, and closed at $1.275 yesterday. The airline has been the subject of ongoing speculation that it is vulnerable to a takeover or destabilisation strategy from activist shareholders, as its share price is still trading near a record low and at half book value.
Confirmation that the high-profile investment group had purchased a stake
comes after The Weekend Financial Review reported that Mr Carnegie and Mr Gregg led briefings to some Qantas investors and unions two months ago, in which they pushed a rival management strategy for the airline. One source close to the group said they were aware of sufficient shareholder interest in the alternate strategy. “There wouldn’t be room for shareholder activism if shareholders were happy,” the source said.
The group is understood to have pressed the case for the float of Jetstar’s
Asian franchises, and the partial sale or float of Qantas Frequent Flyer, moves they told one investor could unlock billions of dollars in otherwise unrealised value.
Lacks support of major shareholders
The consortium has privately criticised Qantas chief Alan Joyce’s
international strategy and details of the comprehensive tie-up with Emirates. It has not secured the support of major shareholders including Balanced Equity Management, which owns 11 per cent of the airline. It is believed the investment consortium has also held talks with financial backers to fund a larger stake to push their views, though no decision has been made yet on whether to proceed.
Mr Dixon and Mr Gregg backed the failed buyout attempt for Qantas in 2007, while Mr Carnegie advised the Qantas board which also supported the private equity bid.
The group has made private investments in the airline industry including in
Global Aviation Asset Management, an aircraft leasing firm that they bought into in 2010 before it was sold one year later at a 40 per cent return. Other investors in the GAAM consortium included former Allco Finance Group executive chairman David Coe, and Greg Woolley, a former Macquarie Bank executive who headed the investment committee behind the $11 billion bid for Qantas by a consortium including Allco, private equity group TPG and Macquarie.
Mr Dixon, Mr Gregg and Mr Carnegie declined to comment. Mr Singleton did not return phone calls seeking comments. A Qantas spokeswoman declined to comment.
The group does not have to declare any interest as long as the holding is under 5 per cent.
The group of former Qantas executives and their co-investors seeking support for a change of strategy at the national carrier has emerged as owning a strategic stake in the airline.
The Weekend Financial Review has learned the consortium has amassed a
shareholding in Qantas, believed to be a stake of between 1 and 2 per cent.
The group of investors includes former Qantas chief Geoff Dixon,
former CFO Peter Gregg, investment banker turned venture capitalist Mark
Carnegie and ad man John Singleton.
The stake has been linked to a holding of similar size being held by Credit
Suisse in London, with the initial entry believed to have been when the stock was trading at $1.15. Qantas last traded at that price in early September, and closed at $1.275 yesterday. The airline has been the subject of ongoing speculation that it is vulnerable to a takeover or destabilisation strategy from activist shareholders, as its share price is still trading near a record low and at half book value.
Confirmation that the high-profile investment group had purchased a stake
comes after The Weekend Financial Review reported that Mr Carnegie and Mr Gregg led briefings to some Qantas investors and unions two months ago, in which they pushed a rival management strategy for the airline. One source close to the group said they were aware of sufficient shareholder interest in the alternate strategy. “There wouldn’t be room for shareholder activism if shareholders were happy,” the source said.
The group is understood to have pressed the case for the float of Jetstar’s
Asian franchises, and the partial sale or float of Qantas Frequent Flyer, moves they told one investor could unlock billions of dollars in otherwise unrealised value.
Lacks support of major shareholders
The consortium has privately criticised Qantas chief Alan Joyce’s
international strategy and details of the comprehensive tie-up with Emirates. It has not secured the support of major shareholders including Balanced Equity Management, which owns 11 per cent of the airline. It is believed the investment consortium has also held talks with financial backers to fund a larger stake to push their views, though no decision has been made yet on whether to proceed.
Mr Dixon and Mr Gregg backed the failed buyout attempt for Qantas in 2007, while Mr Carnegie advised the Qantas board which also supported the private equity bid.
The group has made private investments in the airline industry including in
Global Aviation Asset Management, an aircraft leasing firm that they bought into in 2010 before it was sold one year later at a 40 per cent return. Other investors in the GAAM consortium included former Allco Finance Group executive chairman David Coe, and Greg Woolley, a former Macquarie Bank executive who headed the investment committee behind the $11 billion bid for Qantas by a consortium including Allco, private equity group TPG and Macquarie.
Mr Dixon, Mr Gregg and Mr Carnegie declined to comment. Mr Singleton did not return phone calls seeking comments. A Qantas spokeswoman declined to comment.
The group does not have to declare any interest as long as the holding is under 5 per cent.
This should b fcuking illegal. All players have far more knowledge about the internals of Qantas than any other investor.
Last edited by Sunfish; 24th Nov 2012 at 19:00.
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Originally Posted by Sunfish
This should b fcuking illegal. All players have far more knowledge about the internals of Qantas than any other investor.
They have an alternate plan and they reckon they can make it work better than Joyce based on their direct history and experience with the company. Nothing illegal in that. Unless you take the position you can never hire anyone to use their experience and training gained elsewhere. Takeovers could only ever be undertaken by people with no idea of the industry target otherwise it could be claimed they "have far more knowledge about the internals of X than any other investor". Logically it is only through having that knowledge that you can form a genuine business plan to do something better.
Other investors are free to form consortia and engage Gregg, Dixon and Co to advise them or be part of their team including taking an equity position.
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This should b fcuking illegal. All players have far more knowledge about the internals of Qantas than any other investor.
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Well, the problem in my view is that he did this, while filling his own pockets and setting up an uncertain future for the employees he left behind, rather than create long term value.
The bigger problem however is that he sat in the CEO seat while he plotted to put together a private equity bid when arguably he should have stood aside the minute he became involved. Recent events in Billabong by a director showed that this is the proper course of action when a CEO becomes so heavily conflicted between his personal objectives and those of the company. There was a WA mining company chair who booted a CEO when he got wind of similar events a few years ago. The QF Chair appeared to be part of the plan or atleast sanctioned it, so therefore forgot her own role.
To then continue to have private meetings with the CEO has confused the issue further. It is not unusual for a mentor /student to have ongoing relationships BUT it is a very bad look in the context within which it happened. The fact that it stopped when reported says they knew it as well.
Have to say that the whole situation has the smell of either bad journalist standards or the NSW ALP. One day we will find out which.
The bigger problem however is that he sat in the CEO seat while he plotted to put together a private equity bid when arguably he should have stood aside the minute he became involved. Recent events in Billabong by a director showed that this is the proper course of action when a CEO becomes so heavily conflicted between his personal objectives and those of the company. There was a WA mining company chair who booted a CEO when he got wind of similar events a few years ago. The QF Chair appeared to be part of the plan or atleast sanctioned it, so therefore forgot her own role.
To then continue to have private meetings with the CEO has confused the issue further. It is not unusual for a mentor /student to have ongoing relationships BUT it is a very bad look in the context within which it happened. The fact that it stopped when reported says they knew it as well.
Have to say that the whole situation has the smell of either bad journalist standards or the NSW ALP. One day we will find out which.
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I don't see what the problem is. Dixon delivered profit for the group every year he was CEO.
You are right. Dixon was hopelessly compromised in carrying out his fiduciary duty. He SHOULD have stood aside. He didn't.
While Qantas delivered profits, it was the result of the cost cutting model that we lament today. Dixon had shareholders had his #1 priority with customers and staff way behind. He began the process of taking a premium service airline down the road toward a LCC.
I am a shareholder and strongly believe that Qantas should STAY a safe, premium service airline and because it's customers and staff ALSO want it that way.
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strongly believe that Qantas should STAY a safe, premium service airline and because it's customers and staff ALSO want it that way.
I don't see what the problem is. Dixon delivered profit for the group every year he was CEO.
Dixon also created J* at the expense of QANTAS, cannibalised their routes and commenced the countdown to what we now have. A basket case of an airline, that has a "virtual" international network.
Dixon also did nothing but talk down the airline during its best years whilst making record profits, but when the private equity bid failed, for the first time did he ever talk up the airline. The only reason was to get the best share price for his mates that missed out on the purchase of the company.
Olivia, you can't see what the problem is because you need new spectacles. Dixon was and still is a dog of a person who only looks out for Dixon.
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The Fin Review reporting that the consortium is to make their intention public this week.
Qantas reported to be ready for a public stoush.
I am going to enjoy this!
As for Qantas its probably rooted either way and if Dixon and his mates succeed it seems Jetstar International (at least) may be rooted also.
Interesting times!
Qantas reported to be ready for a public stoush.
I am going to enjoy this!
As for Qantas its probably rooted either way and if Dixon and his mates succeed it seems Jetstar International (at least) may be rooted also.
Interesting times!
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If you want to see how rooted Qantas is get an eyeful of the photos of its supposedly upgraded business class domestic in Australian Business Traveller here:
Qantas moving to Airbus A330-only flights for Sydney-Perth, Melbourne-Perth - Flights | hotels | frequent flyer | business class - Australian Business Traveller
Does Qantas hate its customers? How can any expert management do so much damage to themselves.
Ben has also covered this and says Emirates can bail if Joyce gets flicked.
Qantas continues to kick own goals, as contras circle | Plane Talking
Qantas moving to Airbus A330-only flights for Sydney-Perth, Melbourne-Perth - Flights | hotels | frequent flyer | business class - Australian Business Traveller
Does Qantas hate its customers? How can any expert management do so much damage to themselves.
Ben has also covered this and says Emirates can bail if Joyce gets flicked.
Qantas continues to kick own goals, as contras circle | Plane Talking
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My "connected" postie (who correctly called an Emirates/QF deal back in June, although he got the structure wrong) suggests Gerry Harvey's name keeps popping up in relation to the Gregg/Dixon/Singo as a fellow PE "investor". Is this why he is getting into the very public QF bashing game?
The postie also suggest this PE deal is backed by Singapore dollars, a few more twists and turns to go in this saga...
The postie also suggest this PE deal is backed by Singapore dollars, a few more twists and turns to go in this saga...
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Reading the replies on the ABT website, it sounds like a whole bunch of uneducated ppruners, who are still angry they never got in to QF, still going to every website possible and spend time trashing the brand.
Seriously, go read it. Spelling mistakes, errors in grammar and poor punctuation! If anyone with half a brain reads that website and thinks a real business person has time to comment so "passionately" about such a topic is clearly delusional!!
Qantas moving to Airbus A330-only flights for Sydney-Perth, Melbourne-Perth - Flights | hotels | frequent flyer | business class - Australian Business Traveller
Seriously, go read it. Spelling mistakes, errors in grammar and poor punctuation! If anyone with half a brain reads that website and thinks a real business person has time to comment so "passionately" about such a topic is clearly delusional!!
Qantas moving to Airbus A330-only flights for Sydney-Perth, Melbourne-Perth - Flights | hotels | frequent flyer | business class - Australian Business Traveller
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Come on aussie.......
Dear Scrotey (ball bag, how the hell do you spell it),
You are taking tens of thousands of people for the ride of their lives on your narcissistic roller coster. They all believe in you and what you stand for. You are truly an Australian to follow. One to be rallied behind and supported. You and you alone can save the workers and thier passengers from this rort of sorts. We love you and miss you. Please come back and save the day. Heaven is awaiting. Kind Regards, The Masses.
P.S. Dont tell anyone, because its a secret, bit like the Church.
You are taking tens of thousands of people for the ride of their lives on your narcissistic roller coster. They all believe in you and what you stand for. You are truly an Australian to follow. One to be rallied behind and supported. You and you alone can save the workers and thier passengers from this rort of sorts. We love you and miss you. Please come back and save the day. Heaven is awaiting. Kind Regards, The Masses.
P.S. Dont tell anyone, because its a secret, bit like the Church.
Last edited by Acute Instinct; 6th Dec 2012 at 10:17. Reason: Spelling of nut sack in slang