Howard rules out foreign ownership changes and deal over in 2 weeks
With on Friday Prime Minister, John Howard, ruling out a change in foreign ownership laws to accommodate foreign corporate raiders, foreign ownership of Qantas will remain capped at 49%, with single shareholders able to hold up to 25% and foreign airlines up to 35%.
Media reports over the weekend say that a formal takeover bid for Qantas could be launched within a fortnight and a group closely associated with industry superannuation funds might be involved in the bid.
The Weekend Australian named the investment company Industry Funds Management (IFM) as a consortium backer.
Known to be union friendly, IFM is run by Gary Weaven, a former assistant-secretary of the Australian Council of Trade Unions, who has been involved with union-based industry funds since the Prices-Incomes Accord of the Hawke-Keating government.
Qantas CEO Geoff Dixon has played down all speculation, saying it was still “very early days” even issuing a very brief media release:-
“In response to some press reports, the Chief Executive Officer and Managing Director of Qantas Airways Limited, Mr Geoff Dixon, said today that in line with protocols set up by the Qantas Board, he had had no discussions with any member of the consortium looking at taking equity in Qantas on his future role, remuneration or equity in any new company.”
The Weekend Australian says that the consortium is understood to have approached Qantas last month and is already conducting due diligence, mulling a bid for Qantas that could be worth up to A$11 billion ($12.86 billion), or A$5.50 a share.
The consortium is led by US private equity firm, Texas Pacific Group, and Macquarie Bank and Canada’s Onex Corp, which has experience in airline catering and aircraft parts manufacturing, is believed to have joined.
Sources said they believed the takeover bid would be resolved, one way or the other, within two weeks.
Report by The Mole
John Alwyn-Jones
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