jetfuel
Posts: 1028
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Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:29 am

The deal means Australia's national carrier will become a privately-owned company and will delist from the Australian Stock Exchange after 11 years as a listed group.


http://www.news.com.au/business/story/0,23636,20925954-31037,00.html
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
jetfuel
Posts: 1028
Joined: Tue Jan 11, 2005 10:27 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:32 am

From the Aus Stock Exchange

Media Release
Qantas Airways Limited ABN 16 009 661 901
Further information and media releases can be found at the Qantas internet website: www.qantas.com.au
SYDNEY, 14 December 2006: The Chairman of Qantas Airways Limited, Margaret Jackson, today
announced that, following detailed negotiations, the Qantas Board had received a revised proposal from
Airline Partners Australia (APA) to acquire 100 percent of the Company for $5.60 cash per share.
Margaret Jackson said the revised proposal provided an attractive premium for Qantas shareholders,
being:
• 33 percent higher than the closing share price of $4.20 on 6 November 2006, the day before the first
speculation about the offer; and
• 61 percent above Qantas’ volume weighted average share price of $3.48 over the six months to that
date.
Ms Jackson said that, subject to receiving an opinion by independent expert Grant Samuel that the offer
is fair and reasonable, the Non-Executive Directors unanimously intend to recommend that shareholders
accept the offer in the absence of a superior proposal, and all Directors intend to accept in respect of
their own shareholdings.
“The Directors believe this offer allows Qantas shareholders to realise significant value for their shares
that has not been fully recognised in the public market,” Ms Jackson said.
The proposal will be implemented by way of an off-market takeover bid, which will be subject to certain
conditions including a 90 percent minimum acceptance condition.
Ms Jackson said the revised proposal followed negotiations with APA since the Board’s rejection
yesterday of its initial proposal. These negotiations resulted in the removal of unacceptable conditions
and a substantial break fee as well as an increase in the price from $5.50 to $5.60 per share.
Under the terms of the offer, the interim dividend that would otherwise be payable in April 2007 will not
be available. However, the Board is evaluating whether a fully franked special dividend could be paid
during the bid period, in which case the offer consideration would be reduced by the dividend amount.
“Following the Directors’ decision, Qantas this morning executed an Implementation Deed with APA and
its members to progress the offer,” Ms Jackson said.
A summary of the key terms of the Implementation Deed is attached.
APA consists of the following investors:
• Allco Equity Partners
• Allco Finance Group
• Macquarie Bank
• TPG
• Onex
• other foreign investment funds
QANTAS RECOMMENDS REVISED OFFER
FROM AIRLINE PARTNERS AUSTRALIA
2
The proposal involves:
• Qantas transitioning to a privately owned company and de-listing from the Australian Securities
Exchange;
• Qantas remaining majority owned and controlled by Australians; and
• retention of the current management team, who will invest in the privately owned company.
Mr Geoff Dixon would continue as Chief Executive Officer and Mr Peter Gregg would remain Chief
Financial Officer under the new ownership structure.
As Executive Directors, Mr Dixon and Mr Gregg did not participate in the Board’s decision-making
processes. However, they agreed with the decision and the rest of the senior executive team also
support the proposal.
Ms Jackson said the consortium had expressed its support for core Qantas strategies, including:
• maintaining an extensive domestic and international airline network, using Qantas’ two-brand
(Qantas and Jetstar) strategy;
• continuing Qantas’ commitment to high quality product and service; and
• improving the company’s cost base to be globally competitive.
“If this acquisition is successful, Qantas will remain a majority Australian-owned, Australia-based airline,”
Ms Jackson said.
“The foreign-based Consortium members are experienced airline investors with a long-standing
association with the industry. The Consortium members have made it clear to us that they recognise the
immense value of the Qantas brand and intend to improve it and grow the business.”
“Qantas makes an enormous contribution to the Australian economy and community. It employs around
37,000 staff — 93 percent of them in Australia. It spends billions of dollars on goods and services from
local suppliers every year, carries a third of all international tourists to Australia and provides a broad
network linking metropolitan, regional and rural Australia to the world.
“If this bid succeeds, Qantas will continue to play a vital role as Australia’s national carrier.”
Ms Jackson said the Board’s formal response will be provided in a Target statement that is expected to
be mailed to all shareholders by early February 2007.
UBS, Carnegie, Wylie & Company and Allens Arthur Robinson are advising the Non-Executive Directors
of Qantas.
Issued by Qantas Corporate Communication (Q3512)
Media Enquiries: Belinda de Rome - Telephone 02 9691 3762
Summary of Implementation Deed
Page 1
Qantas Airways Limited ("Qantas") has entered into an Implementation Deed with Airline Partners
Australia Limited ("APA") and each of the bid consortium members dated 14 December 2006. The
consortium members are Macquarie Bank Limited, Texas Pacific Group, Allco Equity Partners
Limited, Allco Finance Group Limited and Onex Corporation (the "Consortium Members").
TAKEOVER BID
Under the Deed, APA has agreed to make a takeover offer for all of the Qantas shares on certain
agreed terms (the "Offer"). The consideration which APA is required to offer Qantas shareholders
is $5.60 cash per Qantas share.
BID CONDITIONS
The Deed sets out the conditions of the Offer which are summarised in the announcement released
today by APA.
Under the Deed, Qantas has agreed not to do (or omit to do) anything which will, or is likely to,
result in any of the Offer conditions being breached. However, this does not prevent Qantas or the
Qantas Directors from taking or refusing to take any action provided that the Qantas Directors have
determined, in good faith after having consulted with their external legal and financial advisers, that
failing to take, or failing to refuse to take, such action would or would be likely to constitute a
breach of the Qantas Directors' fiduciary or statutory obligations.
APA warrants that there is no act, omission, event or fact of which APA or any of its officers,
employees and advisers is aware (or which any of them ought reasonably to be aware as a result
of the due diligence conducted on Qantas) that would or is likely to result in one or more of the
Offer conditions being triggered.
EXCLUSIVITY
Under the Deed, Qantas has agreed, for a period commencing on the signing date until termination
of the Deed (the "Exclusivity Period"), that:
(a) it must not, and must ensure that none of its officers, employees and advisers do not,
directly or indirectly solicit, invite, facilitate or encourage any person, or communicate any
intention to do any of these things, with a view to obtaining any offer or proposal from any
person in relation to a competing proposal for Qantas;
(b) it must not, and must ensure that none of its officers, employees and advisers do not,
negotiate or enter into, continue or participate in negotiations or discussions with any other
person regarding a competing proposal, even if:
(i) that person’s competing proposal was not directly or indirectly solicited, initiated, or
encouraged by Qantas or any of its officers, employees or advisers; or
(ii) that person has publicly announced their competing proposal,
(the "No-Talk Restriction");
(c) Qantas must not without APA's prior written consent:
(i) solicit, invite, facilitate or encourage any party (other than APA or its officers,
employees and advisers) to undertake due diligence investigations on Qantas or
any of its related bodies corporate where to do so would involve a breach of
paragraph (a); or
(ii) make available to any person (other than to APA or its officers, employees and
advisers) or permit any such person to receive any non-public information relating
to Qantas or any of its related bodies corporate,
(the "No Due Diligence Restriction").
Page 2
The obligations in paragraphs (b) and (c) do not apply to the extent that they restrict Qantas or the
Qantas board from taking any action in respect of a bona fide competing proposal which was not
encouraged, solicited, invited, facilitated or initiated by Qantas in contravention of paragraph (a)
provided that the Qantas board has determined:
(i) that the competing proposal for Qantas is a 'superior proposal' (see definition below); or
(ii) in good faith and acting reasonably, that failing to respond to that competing proposal
would constitute a breach of the Qantas Directors' fiduciary or statutory obligations, after
receiving written advice to that effect from Qantas's external lawyers,
(the "Competing Proposal Exception").
NOTIFICATION OF OTHER APPROACHES
Under the Deed, Qantas has agreed that during the Exclusivity Period it will immediately inform
APA if it is approached by any person to engage in any activity that would breach the No Talk
Restriction or the No Due Diligence Restriction (or would breach those restrictions if it were not for
the Competing Proposal Exception), in which case Qantas must also keep APA reasonably
informed about the nature of any further or ongoing interaction with any such persons, but Qantas
will not be obliged to identify the relevant person to APA, or the details of the competing proposal,
unless:
(a) such competing proposal, or details of the relevant competing proposal, has been made
public; or
(b) the Competing Proposal Exception permits or requires Qantas to respond to the competing
proposal (in which case Qantas must identify the relevant person to APA, and the details of
the competing proposal).
DEFINITION OF 'SUPERIOR PROPOSAL'
Under the Deed, a 'superior proposal' means a bona fide competing proposal which the Qantas
Directors have determined, in good faith after consultation with their external legal and financial
advisers, is, or is reasonably likely to result in a proposal by the person making the competing
proposal that:
(a) is reasonably capable of being valued, taking into account all aspects of the competing
proposal or the proposal and the person making it;
(b) is reasonably capable of being completed on a timely basis and is no more conditional than
the Offer as at the time of announcement of the Offer; and
(c) is more favourable to Qantas shareholders (as a whole) than the Offer, taking into account
all the terms and conditions of the competing proposal or the proposal.
UNDERTAKINGS BY EACH CONSORTIUM MEMBER
Each Consortium Member will in their specified respective proportions (where such proportions
total 100%) procure that APA is immediately provided with sufficient funds for the due and punctual
performance of any of APA's obligations under the Deed.
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:33 am

There was another thread on this subject earlier. Did it get deleted? I can't find it. Appreciate a link if you have one.
"When all is said and done, more will be said than done".
 
QANTAS077
Posts: 5175
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:40 am

what happend to the thread which was started 3hrs ago?
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:43 am

That's what I'm trying to find out. Mods? What happened to the thread?
"When all is said and done, more will be said than done".
 
antares
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:45 am

Well whatever doubts may exist at board level, it presented a unanimous endorsement of the revised offer (as it had to) in the ASX filing.

The real debate is now on, and needs to be further informed by the wider strategy that may be pursued by the consortium, who would have to be aware of other opportunities to get engaged in the sector in the Asia Pacific region.

The comments from the government so far are favourable. But this will go on for some weeks, so we need to be ready for other surprises, including a lot of turf protection by employees, industry stakeholders in tourism and travel retailing, and renewed attempts by Singapore Airlines to gain access to the trans Pacific routes.

I don't like this deal for the risks it poses to Qantas. But as always, I'm happy to be wrong if only good outcomes occur.
 
Lufthansa
Posts: 2303
Joined: Thu May 20, 1999 6:04 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 9:51 am

Quoting QANTAS077 (Reply 3):
what happend to the thread which was started 3hrs ago?

YES WHAT HAPPENED TO IT ?

I STARTED IT 3 HRS AGO AND THE INFORMATION HAS BEEN PROVEN CORRECT and within the formum rules!!!!

[Edited 2006-12-14 01:55:05]
 
pilotdude09
Posts: 1335
Joined: Mon May 02, 2005 12:35 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:00 am

Quoting Jetfuel (Reply 1):
Mr Geoff Dixon would continue as Chief Executive

Bugger, hoping they might have got rid of him and bought in someone who actually cares about the airline, now he cant use the excuse "we need to make a profit for our shareholders".
Qantas, Still calling Australia Home.........
 
ANCFlyer
Posts: 21391
Joined: Mon Nov 15, 2004 3:51 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:13 am

Quoting Lufthansa (Reply 6):

First, you can stop yelling.

Second, check your e-mail, if you've provided an accurate address to Airliners.net your answer is there.
FOR THOSE THAT FOUGHT FOR IT, FREEDOM HAS A FLAVOR THE PROTECTED WILL NEVER KNOW OR UNDERSTAND
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:16 am

Quoting ANCFlyer (Reply 8):
Second, check your e-mail, if you've provided an accurate address to Airliners.net your answer is there.

Can the rest of us get a response? What happened to the thread? I left for a few hours and returned to find it ... well, "missing"?
"When all is said and done, more will be said than done".
 
Stealthz
Posts: 5546
Joined: Wed Feb 02, 2005 11:43 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:35 am

Quoting Pilotdude09 (Reply 7):
now he cant use the excuse "we need to make a profit for our shareholders".

Well yes he can, the airline, or whatever it morphs into over time, still has shareholders.
The shares may not be publicly traded but there are still entities that hold a stake in the company and they will expect profits. Damn sure they did not start this process because of their love of aviation!
Those entities also have share holders who will expect a profit on their investment.
Indeed the short term profit imperative may be an even higher priority than it has been todate.

Cheers
If your camera sends text messages, that could explain why your photos are rubbish!
 
Lumberton
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Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:41 am

Well, no answer from the mods on restoring the previous thread, so let's bring this subject back to life, shall we? Here's an interesting take on the whole subject from "The Age":
Qantas hails momentous occasion

Quote:
antas chairman Margaret Jackson has described it as a momentous day after the airline accepted a takeover bid from an international consortium.

"Today is a very momentous and exciting day for Qantas," Ms Jackson said.

"Last night the board received a compelling offer from Airline Partners Australia (the consortium).

"It is an offer that my colleagues and I recommend unanimously to shareholders.

"The offer of $5.60 per share allows shareholders to realise value for their shares that has not been fully recognised in the public market."

Ms Jackson said Qantas was not just its shareholders but also about its staff and the communities in which the airline operated.

Well, I guess that if I stood to gain by this transaction, I'd hail it as a "momentous" day as well! I suspect that others may differ in their opinion. Frankly, I will be keenly interested in the subsequent politics being played out here--as well as public opinion. Will this be a "hard sell" to the Australian public? In the U.S. we hardly notice M&A activity anymore, but Qantas is more than just a mere company in the eyes of may Australians. This will likely get emotional.

(Apologies if I'm covering ground that was discussed in the deleted thread. I wasn't able to read it. After all, it was deleted....)
"When all is said and done, more will be said than done".
 
senliture
Posts: 404
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 10:46 am

Mixed feeling. I am happy because I now have a confirmation about the value of shares are indeed much higher than the normal $3 to $4. I bought some shares few years back and it was $3 and I said QANTAS should always be around $5, then SARS, then high petrol price, and now finally $5.6. But the sad thing is, I will no longer be able to own QANTAS shares, it is all private now.
 
antares
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:02 am

Should the deal take place and the betting today would be that it will, Qantas will disappear from the scrutiny of a publicly listed company and many questions that its management has to answer currently will not necessarily require an answer in the near future.

Antares
 
bill142
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:08 am

I should have bought some Qantas shares when the rumors started. The price has gained 33% since the rumors began (to the agreed sale price) and 61% compared to the weighted index average. The big question is what will happen in the future. Texas Pacific don't have a great repuation for improving the service of a service companies they have bought. Personally the consortium members should keep their finger out and let the management team run it how they see fit.

Quoting Lumberton (Reply 11):
I agree with Lufthansa here. The thread should be restored. If there is that much sensitivity, edit the title. The buyout is being reported all throughout the world press. It's r-e-a-l news. Restore the thread....

The thread has been deleted. Build a bridge and get over it.

Quoting Lufthansa (Reply 10):
The previous title was "Qantas takenover",

Not exactly descriptive. Taken over by what exactly? Terrorists? Man Eating Bees? Lurh from Omicron Persi 8?
 
Milesdependent
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:20 am

SOLD?

I would have thought it would go to an extraordinary general meeting of shareholders, and the shareholders will vote. The Directors will recommend that the deal goes through, but it has not gone through until after the vote. That is what I would have thought.
 
Australia1
Posts: 457
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:27 am

now effectively under US control, the big red rat will play into DJ's hands.

Expect massive union action, like the strikes of old, over Xmas & Easter holidays, as massive staff shedding begins, as soon as new owners take over.

For this reason alone, book DJ domestically. It might get DJ moving & make them fast track their services to the U.S.

Michael.
 
antskip
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:28 am

Quoting Bill142 (Reply 17):
The big question is what will happen in the future

Upside is QF will expand its routes dramatically with the massive injection of funds. Downside is that it will be much more vulnerable to fluctuations in fortune: debt ratio will go from 45% to 75-80%, which means QF is based more on mud now rather than rock. QF will continue to make money on the goodwill built up over decades as a National airline. When the time is right for its new owners, whoever they may be, the brand could well change completely, and QF will be no more. Just give them a few years...
 
usnseallt82
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:30 am

Quoting Lufthansa (Reply 6):
I STARTED AND Irtysh-Avia (Kazakhstan)">IT 3 HRS AGO AND THE INFORMATION HAS BEEN PROVEN CORRECT and within the formum rules!!!!



Quoting Lufthansa (Reply 10):
But regardless, it was 100% within the rules.

If it is the thread I'm thinking of, then it needed to be deleted.  checkmark 

It had a vague title Qantas Announcement or something like that and then the link provided said nothing of the announcement. The thread starter message was just something along the lines of, "check this out at 1048."

If that's the thread you guys are talking about, then it definitely needed to be deleted.

However.....chill out. No worries here. You guys have a good one going here with FAR more detail.  yes 

Quoting Lufthansa (Reply 10):
KROC was the moderator who removed it. And I believe did so on highly questionable grounds.

Don't blame him, I'm the one who suggested the deletion. IF it is the same thread I'm thinking of, then my reasons are listed above.

Once again, though....no worries.  Big grin You guys have a good discussion here and no mods are doing anything under questionable conditions.
Crye me a river
 
QANTAS077
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:43 am

Quoting Australia1 (Reply 19):
now effectively under US control, the big red rat will play into DJ's hands.

the largest investor Allco Equity & Allco Finance is an Australian company...they have 35% of the stock and the largest voting right. I doubt much will change with the company in a negative way, infact, things should get better with the injection of equity.

http://www.asx.com.au/asx/research/C...rincipalActivity=&industryGroup=NO
 
User avatar
USAF336TFS
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 11:57 am

Quoting Australia1 (Reply 19):
now effectively under US control, the big red rat will play into DJ's hands.

In actually Texas Pacific Group (Representative of us American "red rats") AND Onex (Canadian) control less then 40% of the company. Therefore it would be much more accurate to label it as "North American control... blah,blah,blah"
The majority 60% remains firmly in Australian hands, as it should be IMHO.

[Edited 2006-12-14 03:58:32]
336th Tactical Fighter Squadron, 4th Fighter Wing, Seymour Johnson AFB
 
Australia1
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:02 pm

Quoting QANTAS077 (Reply 22):
the largest investor Allco Equity & Allco Finance is an Australian company...they have 35% of the stock and the largest voting right. I doubt much will change with the company in a negative way, infact, things should get better with the injection of equity.



Quoting USAF336TFS (Reply 23):
In actually Texas Pacific Group (Representative of us American "red rats") AND Onex (Canadian) control less then 40% of the company. Therefore it would be much more accurate to label it as "North American control... blah,blah,blah"
The majority 60% remains firmly in Australian hands, as it should be IMHO.

you don't spend $11B to not get effective control. Who are the Australians? Mac bank? they'd sell their mother if there was a cent in it for them !!!
 
usnseallt82
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:04 pm

Quoting Australia1 (Reply 24):
they'd sell their mother if there was a cent in it for them !!!

How much you asking?  Big grin
Crye me a river
 
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USAF336TFS
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:08 pm

Quoting Australia1 (Reply 24):
you don't spend $11B to not get effective control. Who are the Australians? Mac bank? they'd sell their mother if there was a cent in it for them !!!

You sound a bit excited. Careful, we don't want to start searching for the heart medication, now.  Smile

On the face of it, it appears to me that with all movement in the airline business globally, the Bank and it's partners are trying to protect Australian interests.

The minority owners appear to want to invest in a very stable Australian airline, with alot of growth ahead of it.
336th Tactical Fighter Squadron, 4th Fighter Wing, Seymour Johnson AFB
 
QANTAS077
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:15 pm

Quoting Australia1 (Reply 24):
Who are the Australians? Mac bank

Allco and Mac bank..do i need to make it any clearer for you? Allco is the largest investor and Australian owned and has a 46% voting interest. the foreign investors only have a 39% voting interest.

the other 15% voting interest is Macquarie banks. it's a bit hard to have effective control if you only have 39% of the voting interest.
 
Gemuser
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:21 pm

Quoting Usnseallt82 (Reply 21):
It had a vague title Qantas Announcement or something like that and then the link provided said nothing of the announcement. The thread starter message was just something along the lines of, "check this out at 1048."

That was my thread, and ANCFlyer deleted it because he did not read it properly and neither did you! If you had followed the link and clicked on 10:58,(you may have needed to scroll) like I said, you would have been taken to the announcement that Jetfuel copied into reply 1. The ASX does not permit direct links to its interior announcement pages.

Gemuser
DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
 
ANCFlyer
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:28 pm

Quoting Gemuser (Reply 28):
Gemuser

Well, I read the six words you had on the post and I checked the link. I didn't have a problem with the six words . . . those were easy. And the link, which I checked, didn't have the word Qantas on it.

Perhaps if you'd provided a tad more information, like "scroll here, or click this" or some such, we'd be in a different tone at the moment. Sorry . . .
FOR THOSE THAT FOUGHT FOR IT, FREEDOM HAS A FLAVOR THE PROTECTED WILL NEVER KNOW OR UNDERSTAND
 
antares
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:32 pm

Golly, there are some trusting souls here. Qantas has just had a big injection of debt. It will if the government approves and then the current shareholders approve, disappear from the level of scrutiny and accountability required of listed companies.

Although the statements and reports claim the current management will remain, the current strategic policies will remain, and the group will not be split up, none of that is binding and can be altered in a split second according to 'changed' circumstances. Which of course is true in its current form. Just don't get conned. This isn't about more of the same.

This deal isn't about business as usual, it is about generating massive fees.

And for someone above to suggested the bank is acting in the interests of the airline is so... awesomely improbable.

Good news if it goes ahead for those who want their lollies now. Anything but good news in all probability for the customers and employees.

Antares
 
usnseallt82
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:34 pm

Quoting Gemuser (Reply 28):
That was my thread, and ANCFlyer deleted it because he did not read it properly and neither did you!

I read it properly....it only had like 3 words to it.

ANC hit my point....no need for me to restate it...

Quoting ANCFlyer (Reply 29):
Well, I read the six words you had on the post and I checked the link. I didn't have a problem with the six words . . . those were easy. And the link, which I checked, didn't have the word Qantas on it.

Perhaps if you'd provided a tad more information, like "scroll here, or click this" or some such, we'd be in a different tone at the moment. Sorry . . .

Like I said man, no worries. You posted a thread but didn't put much effort into making it good. That's fine, we all make mistakes. Hell, I've done it before myself.  Big grin

This is a good one now so let's just keep it in here.  checkmark 
Crye me a river
 
Australia1
Posts: 457
Joined: Fri Nov 03, 2006 7:36 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 12:41 pm

Quoting Antares (Reply 30):
Golly, there are some trusting souls here. Qantas has just had a big injection of debt. It will if the government approves and then the current shareholders approve, disappear from the level of scrutiny and accountability required of listed companies.

Although the statements and reports claim the current management will remain, the current strategic policies will remain, and the group will not be split up, none of that is binding and can be altered in a split second according to 'changed' circumstances. Which of course is true in its current form. Just don't get conned. This isn't about more of the same.

This deal isn't about business as usual, it is about generating massive fees.

And for someone above to suggested the bank is acting in the interests of the airline is so... awesomely improbable.

Good news if it goes ahead for those who want their lollies now. Anything but good news in all probability for the customers and employees.

Antares

so true !!!

Some of you others need to take a sip of reality.

QF will be broken up, 1000's will loose their jobs & be offered employment on contract or similar & unions will be shut out, that's why we're heading for BIG QF strike action !!!
 
Curmudgeon
Posts: 682
Joined: Wed Oct 25, 2006 7:19 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:03 pm

Quoting USAF336TFS (Reply 23):
Quoting Australia1 (Reply 19):
now effectively under US control, the big red rat will play into DJ's hands.



Quoting USAF336TFS (Reply 23):
n actually Texas Pacific Group (Representative of us American "red rats") AND Onex (Canadian) control less then 40% of the company. Therefore it would be much more accurate to label it as "North American control... blah,blah,blah"
The majority 60% remains firmly in Australian hands, as it should be IMHO.

He wasn't calling Americans "red rats", that's one of QF's nicknames (beats me, because its a white rat on a red tail)

Foreign control is limited by the Qantas Sale Act to an aggregate of 49% to foreign shareholders, with 25% the max for any one shareholder. No problems so far.

The real potential problems lie in the future when there's a downturn, and the company can't service its now enormous debt. The lenders of that money are all offshore, and if a default or re-negotiation occurs, the lenders will then have 100% control of the airline.

I agree that for customers and employees it is a black day. No LBO has ever meant lower prices, or good things for an employee group, only rich fees for the bankers.

Macquarie bank bought Sydney Airport...now the average traveller spends $34.00 just to get from the street to the airplane. I imagine QF is going to be the same...crap service at new, higher fares.

I have always thought that Chairman Margaret Jackson was an empty blouse. I'm sorry to see that jaundiced view now vindicated.
Jets are for kids
 
AirEMS
Posts: 625
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:11 pm

I have a question.

What exactly does this mean for Qantas? is this a good thing or a bad thing?

Please don't flame me!

-Carl
If Your Dying Were Flying
 
Australia1
Posts: 457
Joined: Fri Nov 03, 2006 7:36 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:17 pm

Quoting AirEMS (Reply 34):
What exactly does this mean for Qantas? is this a good thing or a bad thing?

SHORT TERM - very bad news. QF will be broken up & 1000's will lose their overpaid jobs & a few will be reoffered same jobs on a contract at Virgin Blue type rates.

Unions will go beserk & a BIG strike has to be on the cards.

LONG TERM - Jetstar will probably become a totally separate airline from Qantas. Qantas itself will probably shrink even more to the golden triangle on BNE-SYD-MEL.
 
HKGKaiTak
Posts: 971
Joined: Sat Jun 25, 2005 9:48 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:20 pm

Black day for QF indeed, bankers are never up to any good when they smell an asset they can squeeze money out of. When we revisit this thread (and the other associated threads) in 5 years I wonder how many of our predictions will become true?

On a personal level, I contemplated buying QF shares earlier in the year. D'oh!!!
4 Engines 4 LongHaul
 
jasond
Posts: 648
Joined: Fri Jul 10, 2009 5:23 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:24 pm

Quoting Antares (Reply 30):
Golly, there are some trusting souls here. Qantas has just had a big injection of debt. It will if the government approves and then the current shareholders approve, disappear from the level of scrutiny and accountability required of listed companies.

Although the statements and reports claim the current management will remain, the current strategic policies will remain, and the group will not be split up, none of that is binding and can be altered in a split second according to 'changed' circumstances. Which of course is true in its current form. Just don't get conned. This isn't about more of the same.

This deal isn't about business as usual, it is about generating massive fees.

And for someone above to suggested the bank is acting in the interests of the airline is so... awesomely improbable.

Good news if it goes ahead for those who want their lollies now. Anything but good news in all probability for the customers and employees.

Antares

As always Antares, the voice of reason. As far as I am concerned Qantas has been effectivily de-valued in the eyes of many today and I don't just mean in a monetary sense. Ironically as VH-XBA makes it's way back home (due to arrive in a matter of days) I wonder if the odd tear will be shed by those involved given what has occurred.
 
Australia1
Posts: 457
Joined: Fri Nov 03, 2006 7:36 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:28 pm

DJ could make a big deal in the media about now being the only major majority owned & controlled Australian airline !!!

It's all about perception.

oh & u can control a company with a lot less than 50% of voting shares ... just how you go about it.
 
Ken777
Posts: 9049
Joined: Thu Mar 11, 2004 5:39 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:50 pm

With 90% shareholder approval required the deal isn't done yet. I would anticipate that there will be a rather battle before a vote and wouldn't be surprised if there were more votes against the deal than QF anticipates. I wouldn't be surprised if there were a lot of very small share holders that will turn their nose up at the thought of what might happen to QF. I can definitely see a major effort on the part of the unions to "Vote No And Save Qantas!"

If the deal does go through then I would be somewhat concerned about the future of QF as we know it. If the old management couldn't get the market price up over $5.50 then what will the new owners (using the old management) be able to do to improve the profitability?

There would have to be changes that reduce costs significantly. These changes would probably fall into one of two groups: The first is cutting back on services to the pax - take out the pillows and use AA's BOB program.

The second will relate to employees and this is where I see the huge battle coming. An airline strike is different than say a strike at an auto company. An auto company will have inventory they can continue to sell during the strike. An airline has its inventory immediately washed out.

Not only is there an immediate loss of revenues there is also a need to take care of stranded pax - not cheap - and the reduction in sales for future flights, some months out in the future.

Longer term, a strike that ends with the unions still fighting reduces the attractiveness of the airline to pax considering who to fly with. Good for UA and SQ, but bad for QF.

If the deal goes through I have a concern that the new owners might find themselves in a bigger problem than Airbus has had getting the 380 to EIS.
 
antskip
Posts: 829
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RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 1:52 pm

Quoting Curmudgeon (Reply 33):
white rat on a red tail)

QF's colours are a hangover from the old British colonial mentality of Howards' era - the '50's - red and white. They have never bothered to update the scheme to the new Australian national colours (green and gold). Now they don't need to. Eventually maybe they'll add some blue, and change the Kangaroo to a Bald Eagle? JQ's Star is easier... Smile
 
B787
Posts: 149
Joined: Mon May 09, 2005 7:06 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 2:13 pm

Oh man... so sad. I have to vent...

Yes there goes the Qantas Group as we know. This is classic Private Equity firms doing what they pay themselves millions to do. First will come the fare increase, then the 'outsourcing' of roles, and then the breakup when everything is making maximum $$$$. All so short term.

That Dixon is a canny soul. He silo'd all the seperate business units, tested the unions and Government with the outsourcing, built equity and sold a future plan. All very attractive to Private Equity. Glad (  sarcastic  ) to see QF management are going to benefit so much too. Their optiions have doubled in vlaue AND aren't they getting 1% of the company to share amongst themselves?

So much can be broken up. Qantas, Jetstar International, Jetstar, Jetstar Asia, QF Frequent Flyer, Qantas Travel Business, Qantas Holidays, Qantas Business Services, Catering, and Qantas Link et al.

Time will tell what happens but I don't want to be doom and gloom so I wish them well.

As a consumer I'll just support DJ more now. Maybe it's just me but I haven't been all that impressed with QF (as a customer) for a long time now.

On a side note: Smart move for Toll to keep ahold of DJ and looking forward to see DJ grow.
 
VHXLR8
Posts: 487
Joined: Wed Feb 09, 2005 6:58 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 3:45 pm

Quoting Australia1 (Reply 19):
Expect massive union action, like the strikes of old, over Xmas & Easter holidays, as massive staff shedding begins, as soon as new owners take over.

Hmmmm, and Qantas hasn't previously taken to shedding staff?? Not to mention other resources, as well as huge wastage in areas of middle and upper management.
People are claiming the new consortium are just in it to make money and don't care about the airline. Sounds suprisingly like the current board!
 
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EK413
Posts: 4328
Joined: Sat Nov 29, 2003 3:11 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 3:52 pm

An Australian Icon gone!
Dickson you DICK! Let's see how it take for a repeat of Ansett to occur..

Fantastic NEWS!

EK413
Good evening, ladies and gentlemen. We are tonight’s entertainment!
 
baroque
Posts: 12302
Joined: Thu Apr 27, 2006 2:15 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 4:48 pm

Quoting Antares (Reply 30):

Although the statements and reports claim the current management will remain, the current strategic policies will remain, and the group will not be split up, none of that is binding and can be altered in a split second according to 'changed' circumstances. Which of course is true in its current form. Just don't get conned. This isn't about more of the same.



Quoting Australia1 (Reply 32):
Some of you others need to take a sip of reality.

Yes, well I can see that Dixon and co's efforts are being hailed quite generally in a thoroughly appropriate fashion, so I will just say I agree.

Quoting AirEMS (Reply 34):
I have a question.

What exactly does this mean for Qantas? is this a good thing or a bad thing?

Please don't flame me!

You will likely get burned but only because of the heat being generated at the Qantas management. But to your question, it probably means:
1. Great for Dixon and whoever is a mate of his, such as the chair.
2. For shareholders, immediate gain, longer term loss.
3. For Mr Costello (also known by Blue the Shearer as Mr Costalot) will win on the capital gains tax if he approves it. As he appears to be short about a billion in tax bribes for next years election, the bill or so in cap gains tax on this little stunt might be handy.
4. For potential QF pax, probably bad.
5. For Australia - if Qantas remains anything like a national airline at the end of this it will be astonishing, but I suppose your view will depend if you think national airlines are important.

MEANWHILE. I got an Email ?from Qantas which Pegasus thinks is malicious

"To view a copy of the company announcements*, please visit http://www.asx.com.au/asx/statistics...pe=D&releasedDuringCode=W&x=40&y=9
Pegasus remarks:
"Do you want to go to "http://pull.xmr3.com"

but it actually goes to asx.com And being a flying horse, you might think Pegasus could know about things to do with airlines!!!

Also trying "Qantas.com" gives the following"

"An error occurred while processing your request.

Reference #102.2c8fc7d.1166082302.1dc7d90 "

Something very strange seems to be happening to Qantas web pages. Anyone know what is happening?

What with that and disappearing threads, you don't have to be paranoid.......!!!!
 
Malc
Posts: 7
Joined: Wed Nov 22, 2006 7:25 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 5:25 pm

Doesnt the fedreal govt hold 51% of QF shares and thus only 49% is up for sale?
 
gbb777
Posts: 6
Joined: Mon Aug 14, 2006 10:08 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 5:43 pm

Swift reaction by SIA


Singapore Air, the world's second-largest carrier by market value, climbed 30 cents, or 1.8 percent, to S$16.70, the highest since Dec. 14, 2000.

The carrier's request to fly between Australia and the U.S., the so-called Trans-Pacific route, has been repeatedly rejected by Australia in a bid to shield Qantas, Australia's largest airline.

''There are no grounds whatsoever to maintain the protection of Qantas on the Pacific route,'' said Stephen Forshaw, a spokesman for Singapore Air. ''Today's decision by Qantas to accept the transfer of ownership to a private consortium removes any remote possibility that protection of Qantas had some 'national interest' attached to it.''


(Part of a Bloomberg article)

http://www.bloomberg.com/apps/news?p...8&refer=stocks


The cards are being reshuffled....
 
anstar
Posts: 2868
Joined: Sun Nov 23, 2003 3:49 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 6:04 pm

Quoting Lufthansa (Reply 10):
Um...guys... a buyout is a takeover. The previous title was "Qantas takenover", which is exactly what happened. The previous post was within forum rules, was descriptive and proved to be correct.... I can't help but wonder if it was a little too emotive or contraversal? But regardless, it was 100% within the rules.

Actually the title was misleading. Qantas was not "taken over" it was "sepculation" at the time of the thread starting and infact for many hours after it was started.
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 7:41 pm

Quoting Antares (Reply 30):
This deal isn't about business as usual, it is about generating massive fees.

Somewhat like US & Delta?  Wink
"When all is said and done, more will be said than done".
 
jetfuel
Posts: 1028
Joined: Tue Jan 11, 2005 10:27 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 7:55 pm

Quoting Malc (Reply 45):



Quoting EK413 (Reply 43):
Let's see how it take for a repeat of Ansett to occur..

Fantastic NEWS!

No public scrutiny and yes this is a REAL worry. Qantas has been successful for many years because of the sacred protection afforded. Being miles away from the rest of the world there is no reason passengers can't travel on other carriers, that "may" offer a competitive product.

With plenty of opposition on the kangaroo route to LOndon and the likelihood of new carriers on the LAX route just maybe the golden days are nearly over.

So what we had was a great carrier with some asset backing. The new purchasers will just absorb all those assets and mortgage them to the max to pay for the shares they will buy out, leaving QF not much better off than poor old Ansett. The only winners here are those who will sell their shares for $5.60

Being that the majority of shares are held by super funds/other investors they WILL take the profits and run.

When QF was first floated on the stock exchange it was so the public could have an interest and benefit in our national carrier.

********NOW THE FUTURE**********


It might well still be an Australian based Airline but they might as well think about doing a name change to Delta or Continental............. Seriously this is just the start of globalisation of airlines. In 10 years there will be only 3 or 4 large world airlines.

eg.

Qantas name changed to Continental . Principals of Continental own 49% of Qantas. Continental also owns/controls United and Alaska. Continental is 50% owned by Air France/KLM. Air France/KLM owns British Airways 100%. British Airways owns 50% of Thai and Qantas buys 50% of Malaysian.

They form the new World wide Continental group -

Continental (serves the USA) old Continental/United/Alaska
Continental Pacific old Qantas
Continental Europe old BA, KLM, etc
Continental Asia old Malaysian/Thai

One worldwide fleet. One controlling Company. Imagine the synergies in fleet and operating costs.

Dont laugh, I know this is only and example, BUT THIS IS WHERE WE ARE HEADED
Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 7:59 pm

Quoting Jetfuel (Reply 46):
Dont laugh, I know this is only and example, BUT THIS IS WHERE WE ARE HEADED

I'm certainly not laughing, but maybe you should substitute "Emirates" for "Continental"? After all, couldn't they could be one of the big winners here, too?
"When all is said and done, more will be said than done".
 
KROC
Posts: 18919
Joined: Mon May 08, 2000 11:19 am

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 8:00 pm

Quoting Bill142 (Reply 17):
Not exactly descriptive. Taken over by what exactly? Terrorists? Man Eating Bees? Lurh from Omicron Persi 8?

Thank You. So apparently I wasn't just seeing things. The original thread was deleted and the user in question has received an email with detailed reasoning. Also, the users that were "upset" the original thread was removed (and no, I don't have to change the title of a thread) had their posts voicing their displeasure here removed with detailed reasoning as well. The right course of action in the future is to email me or the mod team and the issue will be dealt with. There are no bonus points for starting threads so please, continue the Qantas discussion here as discussion on the initial threads deletion is closed.

Thanks fellas.
 
User avatar
BNE
Posts: 2921
Joined: Fri Mar 31, 2000 9:37 pm

RE: Qantas Sold To Private Consortium

Thu Dec 14, 2006 8:35 pm

The takeover cannnot be good for Qantas.

The new owners can only see how much profit Qantas is currently making, and Qantas board accepts the offer which is good for them.

Lower service for Qantas passengers and this may lead to a cheaper service which will probably give higher profits in the short term.

I don't like it one bit, yes I get a short term gain in my Qantas shares but I don't see it as a good thing for my Qantas Frequent Flier points or my Qantas Club Membership.
Why fly non stop when you can connect

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