Qantas says it’s ready to move on and would not necessarily support any new bid from Airline Partners Australia, a stance that would almost certainly sink any offer if it was made.
The Qantas stance came after APA confirmed its initial bid – which had the support of the Qantas board – was dead but in doing so it held out the possibility of another offer.
“As indicated yesterday (Monday), given the demonstrated majority shareholder support for APA’s proposal, APA is exploring a number of alternatives, including the possibility of making a renewed offer for Qantas,” yesterday morning’s statement read.
APA mentioned a possible new bid a second time in the final paragraph of its statement, to leave everyone with the idea that a second offer could be coming.
The Qantas board shot that down a few minutes later.
In a statement to the market, the Qantas board yesterday said APA’s bid had failed and “could not be renewed, and that any further offer would be treated as a completely new matter.”
Qantas shares trading at 11.15 am and fell 16 cents to $5.22 and dropped to $5.16 by 20 minutes later. That was a drop of four per cent. The shares later recovered to close at $5.22, a loss of 16c on the day. Turnover was a huge 164.7 million shares, around 8 per cent of the capital.
“The Board of Qantas Airways acknowledged Airline Partners Australia’s (APA) statement that its current bid for Qantas would not proceed,” the airline told the ASX.
“The Chairman of Qantas, Ms Margaret Jackson, said today that APA’s bid had failed and the Board and management would move forward.
“Ms Jackson said the Board and senior management wanted to make it clear that APA’s $5.45 offer could not be renewed, and any future offer would be treated as a completely new matter.
“This has been an extremely difficult process since the Board decided to recommend APA’s bid to shareholders.”
“Ms Jackson said the foremost priority of the Board and management now was the continuing successful operation of the company.
“She said continuity and stability were vital.
“The Board will meet again today and will also be meeting in the near future to discuss management’s three-year plan and strategies for growth.”
“Qantas is undertaking a formal reconciliation of its foreign ownership, however in view of the heavy trading in Qantas shares this has been more difficult than usual.
“The process is being accelerated and Qantas will advise the market as necessary,” the statement concluded.
Earlier APA issued a statement announcing its decision not to pursue the bid. the key paragraphs read:
“Given the amount of time it would take were the issue to be litigated, and the consequent uncertainty for both Qantas and its shareholders, APA has decided not to pursue arguments that it did achieve voting power in excess of 50% by the offer deadline on 4 May 2007.
“APA believes that Qantas shareholders need more certainty and, accordingly, it has determined that its bid should be treated as having lapsed on 4 May 2007.
“It is apparent that a significant majority of Qantas shareholders were supportive of APA’s offer.
“As indicated yesterday, given the demonstrated majority shareholder support for APA’s proposal, APA is exploring a number of alternatives, including the possibility of making a renewed offer for Qantas.”
“We reiterate that APA’s plans for Qantas, should a renewed bid eventuate, have as their central theme the further investment in and growth of Qantas as a world class and quality airline group.
APA said its takeover offer had lapsed and it would not try to enforce a clause which could have shown it had the 50 per cent of shareholder acceptances needed to keep the offer alive.
“APA has decided not to pursue arguments that it did achieve voting power in excess of 50 per cent by the offer deadline on 4 May 2007,” APA said in a statement this morning.
“APA believes that Qantas shareholders need more certainty and accordingly, it has determined that its bid should be treated as having lapsed on 4 May 2007.”
