Qantas Deal Crashes

By J. Kelman,  Newser User
Posted May 5, 2007 8:00 AM CDT
Two Qantas jets pass each other at Sydney international Airport in Australia, Friday, May 4, 2007. Airline Partners Australia consortium has made a 10.8 billion Australian dollar (US$8.9 billion; euro6.55...   (Associated Press)
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(Newser) – Qantas Airlines will keep flying solo, after what would have been the biggest airline takeover in history fell through yesterday evening. Airline Partners Australia, the private equity consortium that offered $11.1 billion for the company, failed to secure the 50% of stock it needed to move the deal to its next stage.

The bid has faced widespread opposition. Some shareholders saw the offer as undervalued; politicians feared a nationalist backlash if the deal went through, although the consortium was led by an Australian bank. Ultimately, an American hedge fund killed the deal, after it backed out of a promise to sell 10% of Qantas's stock to APA.