private-equity-bid-for-qantas-is-too-low

Private equity bid for Qantas is too low

As Allco Finance Group reveals its involvement in the takeover talks, analysts warn that the mooted price of A$5.20 per share for the national carrier wonÆt fly.

By Cherie Marriott

November 23, 2006

Analysts following the rumour that AustraliaÆs national carrier Qantas is about to be bought by a private equity consortium say the mooted price of A$5.20 a share is too low and that the deal will fail unless the bidders increase their offer to around A$5.50 a share, valuing the company at just over A$11 billion $8.3 billion.

Talk about the sweet spot for the daring takeover bid came as Allco Finance Group emerged as another potential partner in the consortium led by Macquarie Bank and buy-out firm Texas Pacific Group TPG. Qantas confirmed on Wednesday that it had received an unsolicited approach from Macquarie and TPG, but that the proposal was ôconfidential...

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