A takeover bid for Qantas has collapsed despite the backing of the carrier’s board and the Australian Government.
The consortium of private equity firms behind the bid, Airline Partners Australia (APA), issued a statement on Tuesday announcing the takeover had lapsed following three days of confusion.
APA failed to meet a Saturday deadline for registering the support of 50% of shareholders, then claimed it had met the deadline but been unable to register all share interest. When the Australian takeover panel refused a plea for an extension, APA announced it was considering a renewed offer.
But today it admitted defeat, with the Australian media denouncing the affair as a farce.
Airlines are attracting growing interest from private equity groups, which have huge sums to purchase listed companies but have shied away from carriers until recently because of the historically low margins in an industry that frequently registers heavy losses.
APA included US private equity group Texas Pacific, which is also involved in a bid for Alitalia. Spanish carrier Iberia is also the subject of takeover interest, with British Airways in talks with private equity firms to form a consortium.
Most bids are made by consortia fronted by a company based in the same country as the target carrier in order to comply with foreign ownership restrictions.
Critics argue private equity firms squeeze or asset-strip the companies they buy to justify high purchase prices and make a quick return.