A potential buyout of Qantas by a consortium of Australian private equity firm may have hit an obstacle. It seems that support for the deal is lagging by the shareholders.

Where support was once near 28% of the shareholders, it has now dipped to 25.5%. Why the faltering acceptances? There is concern that 49% of Qantas is foreign-owned - mostly by offshore hedge funds. According to their corporate by-laws, however, Qantas cannot be more than 49% foreign owned.

While all this is looked at more closely, Airline Partners Australia - the group of private equity firms interested in buying Qantas - is doing its best to deflect doubt on the deal, citing some numbers that actually indicate support is on the rise.

Airline Partners Australia's $11.1 billion takeover bid for Qantas remains on shaky ground, after the private equity consortium suffered another sharp drop in acceptances for its offer.

Despite APA spokesman Bob Mansfield declaring at the weekend that "a clear majority of Qantas shareholders" was in favour of the $5.45-a-share offer, the consortium reported yesterday that overall acceptances had dipped from 27.8 to 25.5 per cent.

(Continue reading this story on Brisbane Times)

Next article » Murdoch Pays (Compliments)

Previous article « ALM Sale Price Vs Their Cash Flow