Qantas board gives takeover green light – 15 Dec 2006

Qantas is poised for a change of ownership after the Australian carrier’s board agreed to recommend a £4.43 billion takeover bid to shareholders.

The takeover consortium, Airline Partners Australia, comprises a series of investment groups fronted by the Australian Macquarie Bank and including US venture capital fund Texas Pacific Group.

But the biggest shareholder will be Melbourne-based Allco Equity Partners, which includes former boss of Qantas and British Airways Sir Rod Eddington among its non-executive directors.

Macquarie said the consortium’s composition would comply with ownership restrictions limiting foreigners to a maximum combined stake in the airline of 49%.

The takeover remains subject both to acceptance by 90% of shareholders and to regulatory approval. The Australian Government announced in November that it would not block the deal.

Qantas is currently owned by a raft of public investors, of which the largest is bank JP Morgan.

British Airways sold its 18% stake in Qantas in September 2004 for £425 million. Its share would have been worth £808 million today.