Multi-billion dollar Qantas bid revived

SYDNEY - An apparently doomed multi-billion dollar takeover offer for Australian airline Qantas spluttered back to life Saturday after the bidders said they received last-minute support from a large investor.

The Airline Partners Australia (APA) consortium said the support took shareholder acceptances to 50.6 percent, just above the 50 percent threshold needed to keep the 11.1 billion dollar (9.2 billion US) bid alive.

It was a major reversal for APA, which said late Friday that its six-month campaign to gain control of the iconic Australian carrier had all but ended because of insufficient acceptances.

"On Friday evening, APA announced that, subject to confirmation, it appeared that the offer had failed to reach the 50 percent level required for the offer to proceed," the consortium said in a statement.

"However, subsequently on Friday, APA received an acceptance from a large investor, which would be sufficient to take acceptances for Qantas shares to more than 50 percent.

"APA intends to make submissions to the Takeovers Panel to allow the offer to continue."

The last-gasp reprieve gives APA two weeks to try to take shareholder acceptances up to 70 percent, the level needed to finalise the takeover and make the bid unconditional.

Agence France-Presse

Qantas CEO stays put as chairwoman bails out

Sydney - Qantas CEO Geoff Dixon will remain at the controls as chairwoman Margaret Jackson bails out amidst the turbulence of a failed takeover bid, the airline announced Friday.

Jackson, who strongly supported the 9.2 billion dollar bid by a private equity consortium, said she would retire at the annual meeting expected around November but Dickson has committed to stay until at least July 2009.

Media magnate James Packer, Australia's richest man, had also announced that he would resign from the board at the AGM, Jackson said after a two-day board meeting.

"The board will spend the next few months considering my succession and a replacement for James, who has served the board with distinction and diligence," she said.

The board indicated full support for the management and its "positive and exciting plans for the future of Qantas," the statement said.

"In particular the board endorsed the leadership of Geoff Dixon as chief executive officer and his senior management team."

Jackson's resignation was widely expected after the farcical collapse earlier this month of the takeover bid by Airline Partners Australia.

The board fully backed the bid, but it failed to gain enough shareholder approval and the consortium said Thursday it had dropped plans for a renewed offer.

"The meeting discussed Qantas' plans for the next three years following the failure of the takeover bid by Airline Partners Australia," Jackson said.

She said recent months had been particularly testing and coupled with 15 years on the board and seven years as chairman, she felt it was a good time to move on and not stand for re-election.

"I greatly value what Qantas has achieved over the past seven years, culminating in the largest takeover offer for an airline in aviation history.

"I am also confident that the strategies we have put in place will secure a successful future for Qantas," she said.

"These strategies have been endorsed by the market and they formed the basis of the bid by Airline Partners Australia."

Jackson said the board over the past two days reinforced its support for a continuation of the company's strategic direction.

This included growing and defending the domestic flying businesses; restructuring the international airline, growing budget offshoot Jetstar and investing in new generation aircraft and product.

Agence France Presse