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Date Posted: 00:07:57 03/23/10 Tue
Author: vwap share price of $3.48 over the six months to that date.
Subject: Re: closing share price of $4.20 on 6 November 2006
In reply to: Airline Partners Australia 's message, "closing share price of $4.20 on 6 November 2006" on 00:06:07 03/23/10 Tue

>Airline Partners Australia
>From Wikipedia, the free encyclopedia
>Jump to: navigation, search
>Airline Partners Australia (APA) is a consortium that
>made a AU$5.45 per share takeover offer for Australian
>airline Qantas in December 2006. The takeover offer
>received the endorsement of the Qantas board in the
>absence of a better offer, however the proposed
>takeover failed to gain the required level of
>shareholder support, despite the extension of
>deadlines and reduction in requirements for acceptance.
>
>Contents [hide]
>1 Company Information
>2 Takeover Bid
>3 Takeover Concerns
>4 Aftermath
>5 References
>6 External links
>
>
>[edit] Company Information
>The consortium, comprising Texas Pacific Group,
>Macquarie Bank, Allco Finance Group, Allco Equity
>Partners and Onex Corporation, was structured to
>comply with strict Australian ownership laws for
>Qantas (which must be at least 51% owned by
>Australians).[1][2]
>
>[edit] Takeover Bid
>The initial proposal at $5.50 per share was rejected.
>The revised proposal followed negotiations with APA
>since the Board's rejection of its initial proposal.
>These negotiations resulted in the removal of
>unacceptable conditions and a substantial break fee as
>well as an increase in the price from $5.50 to $5.60
>per share.
>
>Margaret Jackson (Chairman) said the proposal provided
>an attractive premium for Qantas shareholders, being
>33 percent higher than the closing share price of
>$4.20 on 6 November 2006, the day before the first
>speculation about the offer; and 61 percent above
>Qantas' volume weighted average share price of $3.48
>over the six months to that date.
>
>Under the terms of the offer, the interim dividend
>that would otherwise have been payable in April 2007
>would not be available. The Board decided that a fully
>franked special dividend could be paid during the bid
>period, in which case the offer consideration would be
>reduced by the dividend amount.
>
>The takeover bid endorsed the existing management and
>structure of Qantas. The initial bid required 70%
>shareholder approval, however this was later reduced
>to 50%. Airline Partners Australia initially announced
>that it had failed in its bid for Qantas, having
>gained approval from only 46.5% of the company, when
>the offer closed at 7.00pm (Sydney Time) on Friday 4
>May 2007.
>
>Later that evening, however, APA received an
>acceptance from an additional 4.96% of Qantas shares,
>held by a Samuel J. Heyman's hedge fund.[3] This
>acceptance that would have taken the acceptance level
>above 50% and therefore allowed the bid to succeed.
>APA appealed to the Australian Takeovers Panel in an
>attempt to have that acceptance included. However on
>Sunday 6 May 2007, the Takeovers Panel ruled that
>Airline Partners Australia did not have the minimum
>holding required at 7.00pm, Friday 4 May, as
>stipulated in the bid. They also saw no sufficient
>basis to re-open the bid.[4].
>
>Some fortnight later, after continued speculation of
>another takeover offer, APA issued a press release
>announcing that:
>
>"APA has concluded that in the current environment and
>circumstances, a renewed offer on terms acceptable to
>APA would not be likely to succeed... On that basis
>APA has decided not to proceed with a renewed offer
>for Qantas at this time. APA thanks Qantas' board,
>management and employees for their professionalism
>during the bid process and wishes Qantas every success
>for the future."
>
>[edit] Takeover Concerns
>Numerous concerns were raised in relation to the
>proposed takeover. These included Macquarie Bank's
>controlling stake in Sydney Airport (Australia's
>largest airport)[5]. There was concern that Macquarie
>Bank, being a major shareholder in both Qantas and
>Sydney Airport, would have incentive to place
>restrictions on commercial competitors using Sydney
>Airport, or favour Qantas in business dealings.
>
>Airline unions raised concerns about the proposed
>takeover, amidst concerns that there would be heavy
>redundancies, or high numbers of jobs sent offshore.
>
>[edit] Aftermath
>The failed takeover bid caused concern amongst
>shareholders as to the ongoing viability of the Qantas
>board, which had recommended that shareholders accept
>the offer.
>
>[edit] References
>^ Macquarie Bank (14 December 2006). "Qantas Board
>recommends Airline Partners Australia cash offer".
>Press release. >href="http://www.macquarie.com.au/au/about_macquarie/me
>dia_centre/20061214a.htm.">http://www.macquarie.com.au/
>au/about_macquarie/media_centre/20061214a.htm.
>Retrieved 2007-01-13.
>^ Geoffrey Thomas (2007-01-12). "Qantas deal is do or
>die, says think tank". The Australian. >target=_blank
>href="http://www.theaustralian.news.com.au/story/0,2086
>7,21044336-23349,00.html.">http://www.theaustralian.new
>s.com.au/story/0,20867,21044336-23349,00.html.
>Retrieved 2007-01-13.
>^ Giant bluff goes badly wrong, no hedging it
>^ "Failure may spur New Qantas Bid". The Age. rel=nofollow target=_blank >rel=nofollow target=_blank
>href="http://www.theage.com.au/news/business/failure-ma
>y-spur-new-qantas-bid/2007/05/06/1178390140530.html.">h
>ttp://www.theage.com.au/news/business/failure-may-spur-
>new-qantas-bid/2007/05/06/1178390140530.html.
>Retrieved 2007-05-07.
>^ "Controlling interest". News.com.au. 2002-06-25. rel=nofollow target=_blank >rel=nofollow target=_blank
>href="http://www.macquarie.com.au/au/about_macquarie/me
>dia_centre/20020625.htm.">http://www.macquarie.com.au/a
>u/about_macquarie/media_centre/20020625.htm.
>Retrieved 2007-05-03.
>[edit] External links

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