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Qantas Deal Crashes

By J. Kelman,  Newser User

Posted May 5, 2007 8:00 AM CDT

(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.

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 billion) takeover offer for Australia's Qantas airlines.   Under Australian takeover laws, APA needs to secure 50 percent...
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)
Ground crew work near Qantas passenger aircrafts at Sydney Airport, Tuesday, May 8, 2007. A 10.8 billion Australian dollar (US$8.9 billion; Euro6.55 billion) takeover bid for one of the world's most recognizable airlines, Qantas, finally collapsed on Tuesday, pulling the company's share price sharply down. Shareholders, believed...
Ground crew work near Qantas passenger aircrafts at Sydney Airport, Tuesday, May 8, 2007. A 10.8 billion Australian dollar (US$8.9 billion; Euro6.55 billion) takeover bid for one of the world's most recognizable...   (Associated Press)
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