"Heads will roll in the wake of Qantas sale fiasco"
The $11.1 billion AU bid to takeover the national carrier of Australia has been declared dead. By the 7pm deadline on Friday, only 46 percent of the voting stock had approved the takeover. Qantas's chairwoman, Margaret Jackson, and her fellow directors endorsed the deal; their heads will likely roll first.
The private equity suitor, Airline Partners Australia, could come back with a higher bid. However, Qantas could face a rival air carrier, Singapore Airlines, bidding on the company. Singapore has been desperately trying to gain access to the highly profitable Sydney-LA route.
"The main obstacle for Singapore Airlines, which scuttled merger talks with Qantas three years ago, is the Qantas Sale Act, which would forbid it owning more than 25 per cent. However, this could be relaxed as the Prime Minister, John Howard, has supported such a marriage."
Singapore has said they only want to remain a competitor to Qantas Airways.
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Posted by: Mike | May 7, 2007 8:55 PM | Permalink to Comment