Regulator rejects Qantas takeover bid

AUSTRALIA’S takeover regulator has scuttled an A$11 billion (€6.64bn) bid for Qantas Airways after refusing yesterday to allow late support from a major shareholder who missed a deadline to accept the offer.

Analysts said the world’s largest airline buyout was effectively dead after the takeovers panel rejected an appeal from the bid group to include the late acceptance and so allow the offer to proceed.

However, the bid group, which includes Macquarie Bank and private equity firm Texas Pacific Group, said it would appeal the decision.

“The offer is dead in its current form. Whether they come back or not and are prepared to dedicate those resources to another bid is uncertain,” Shaw Stockbroking analyst Brent Mitchell said.

The bid group, Airline Partners Australia (APA), failed to reach the 50% of shareholder acceptances it needed to trigger a two-week extension of the offer by a Friday deadline.

But APA said on Saturday a late acceptance from a major US investor hours after the deadline had pushed the acceptances to 50.6% and asked the Takeovers Panel to review the case.

The panel said yesterday it had rejected APA’s application.

“The panel does not accept that Qantas shareholders have not had a reasonable opportunity to participate in the offer,” it said in a statement.

“Shareholders were well aware of the deadlines.”

APA said it was seeking an “urgent review” of the decision.

The takeover panel said it was appointing a sitting panel to consider the review application.