A take-over of Qantas airlines looking increasingly likely, as the Australian government said it would not block the move by an investment consortium.
The take-over, which could see the Qantas broken up into airport, services and airline groups, is likely to be lead by Australia’s Macquarie Bank and includes private equity firm Texas Pacific Group Ventures. Another Australian bank, Allco, said it was considering becoming a partner in the take-over.
Australian Prime Minister John Howard said his government would not change foreign investment laws to halt the takeover. “We can’t preach the philosophy of the free market and every time something arises which might look a bit uncomfortable, dart around and say we’re going to pass a new law to stop it happening,” Howard said.
Under government rules, there is a cap of 25% for any single investor in Qantas, while stakes owned by foreigners cannot exceed 49% and foreign airlines cannot own more than 35%.
Geoff Dixon, Qantas chief executive, said talks with the firms are at a very early stage and tried to cool take-over speculation. “I would like to suggest that some people take a cold shower and settle down.”