Qantas ownership still unresolved

According to analysts report, there seem to be no chances for APA’s (Airline Partners Australia) bid for Qantas to be extended. APA’s $11.1 billion bid lost all hopes on Friday night when it did not succeed in gaining the 50 percent acceptance level of the shareholders in order to extend it for another two weeks.

The regulatory authorities had rejected any appeals for extension, although the company had requested any kind of trade on the company’s share to be brought to standstill unless the situation was clarified. Speculations are also being made on the company shareholders 50 percent acceptance level, Qantas said “uncertainty over a contractual clause could mean APA met the vital 50 per cent acceptance level before the offer closed”.

"The Australian Securities and Investments Commission this morning queried the suggestion in the Takeovers Panel media release dated 7 May 2007 that as a result of clause 7.3(f)(i) of the terms of the APA offer, APA may have met the 50 per cent threshold prior to the close of the APA offer," Qantas said in a statement.

APA is considering launching a new offer for the airline following the collapse of its previous A$11 billion ($9 billion) bid. An air of uncertainty prevails regarding Qantas ownership, as APA is again trying to get control of the airline.

The Federal transport Minister, Mr. Mark Vaile, while telling Sky News commented that, a"Today we have written to Qantas to clarify ... the exact status of the share register, with regard to their responsibilities as far as the Qantas Sales Act is concerned.”

"Once that is done, if it found that the share registry is over that threshold point which needs to be immediately dealt with because the Qantas Sales Act makes very clear that it must be majority Australian-owned."

The company claims that the takeover bid by APA might have succeeded, and that it is ready to take legal action to prove that the shareholders acceptance level superseded the 50 percent mark.

Treasurer Peter Costello while interrogating the matter in public interest and also regarding the regulatory authority’s rules stated that "What is the most important point ... is that the shareholders and the traveling public and the broader community in Australia are given confidence and certainty about the future of the company and the way it's going to operate in the market place ... and what are the intentions of the way forward."