Wed, May 09, 2007
Awkward Situation For CEO, Chairman Who Backed Buyout
It's over. The long, strange trip
that was a takeover bid for Australian flag carrier Qantas came to
its final end (we think) this week, as a consortium led by one of
the country's largest banks conceded its AUS$11 billion bid
failed.
Forbes reports now that the airline is free from the uncertainty
surrounding the bid, management at Qantas plan to push ahead with
plans to expand the airline's mainline operations, as well as its
low-cost JetStar subsidiary. The airline also plans to look into
purchasing shares in overseas carriers, and possibly developing a
freight operation.
A few uncertainties still remain, however... including how the
airline now intends to fund its plans. The future of Qantas
CEO Geoff Dixon's tenure at the airline is also hazy, as he was a
key supporter of the takeover bid, led by Australia's Macquarie
Bank.
Dixon told The Australian newspaper Tuesday he has no plans to
leave the carrier, adding that although the takeover bid failed, it
also shows the strength of management's growth plans for the
airline.
"The bidders made it very plain that they were making the offer
for Qantas to implement the strategic plan Qantas was undertaking,"
Dixon said.
As Aero-News reported Monday,
Airline Partners Australia had attempted to salvage its bid
-- rejected by Qantas shareholders over the weekend
-- by claiming a clause in its buyout proposal had already
given the buyout group majority control of the airline. After
taking that argument before the Australian Securities and
Investments Commission, however, the consortium evidently came to
the conclusion it was all for naught.
Qantas board chairman Margaret Jackson also supported the
takeover bid by APA, which would have earned shareholders about
AUS$5.45 per share. Jackson has also said she plans to remain with
the carrier.
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