More rumours of QF PE Bid.

[el_rooto]

SPECULATION of a renewed takeover tilt at Qantas, perhaps from a private equity bidder, has intensified after revelations that a group of wealthy investors had recently eyed a stake in the airline.

Cookies must be enabled | The Australian

 

[NM]

I would have thought a "group of wealthy investors" would have been able to find better returns in industries other than airlines?

 

[Mal]

I would have thought a "group of wealthy investors" would have been able to find better returns in industries other than airlines?

The only "return" they are after is what they can strip out of the company through selling off the FF program, selling assets then leasing them back, and taking the capital and replacing with debt. Then re-listed on the stock exchange when it's a "stronger" company.

Plenty of money to be made ... But no, not much money to be made from the actual flying side of things.

 

[simongr]

"The only way to make a small fortune in the airline industry is to start with a large fortune."

Henry Ford, 1832.*


* My theory is if you can't attribute a source to a quote then you should at least make something up

 

[browski]

At what share price does Qantas look cheap; on Friday was it not at around $1.45?

If it closes this week under $1.40 there might be a move.

 

[JohnPhelan]

"The only way to make a small fortune in the airline industry is to start with a large fortune."

Henry Ford, 1832.*


* My theory is if you can attribute a source to a quote then you should at least make something up

Ummm........Henry Ford was born in 1863 ........

 

[oz_mark]

Hmm, how easy is it to finance such an equity play these days?

Still, I see mention of Geoff Dixon in the dispatches. Interesting that he would want another go at it!

 

[simongr]

Ummm........Henry Ford was born in 1863 ........

He also never commented on airline management...

 

[QF029]

He also never commented on airline management...

So should we read all of your posts here in the same light :shock:?

 

[simongr]

"The only way to make a small fortune in the airline industry is to start with a large fortune."

Henry Ford, 1832.*


* My theory is if you can't attribute a source to a quote then you should at least make something up

My bolding.

 

[casanovawa]

I think the antics of more than a few of these corporate raiders that came in, created nothing and destroy companies stank anyway...

I would be more than happy for the Govt to step in and screw up the plans of any one (or group) who came in and tried to do the same thing to Qantas as somewhat of an aussie icon...

Tune it up, improve investment decisions and improve use of assets etc ok, strip it or laden it with debt, no way...

 

[dk4]

Conversely, I can only look forward to new owners taking a broom to current executive management, and getting the airline back onto customer oriented track.

As they say, "if the sum of the parts is worth more than the whole, get rid of the CEO and chairman". (And any other stooges.)

 

[ethernet]

Ansett and Myer Combined. By the time they strip the capital, there will be another 10 year 'levy' on the remains. Stripping super funds is dead easy. In fact why not merge BA with QF and lumber the lot with unpayable pension and retirement benefits. Now that super is 'portable' I would be transferring my benefit out ASAP, if a bid causes an upward blip. QF management is bloody brilliant, compared to the pain BA must suffer.
Of course, it could also be a company loaded with tax 'losses' , with a private ruling, looking to beat the change of legislation the government will be passing to prevent another Myer. Just bear in mind companies bearing tax free losses - usually don't give it to employees - that would be stupid.

 

[JohnK]

Private equity takeover of Qantas, or any other Australian airline, cannot be good news for air travel in Australia. I sincerely hope the rumours are just that....

 

[harvyk]

Private equity takeover of Qantas, or any other Australian airline, cannot be good news for air travel in Australia. I sincerely hope the rumours are just that....

Anyone looking at a PE bid for QF doesn't give a stuff about airtravel in Australia. I expect that if a bid was successful the idea would be akin to a viking raid on a village - go in, take what you want, and burn anything left to the ground killing anyone who got in your way.

 

[Kendall Roy]

I'm generally a free market man, but given the importance of QF to the Australian economy, it should be partially nationalised IMHO.....

 

[ethernet]

Unfortunately it is still legal to sell the foundations and whiteant the super funds, See ASIC | Crikey or Cookies must be enabled | The Australian Think about Ansett, HIH, and a lethargic ASIC that acts too late, or Babcock. Forward sell a 20 year exclusive management contract, well protected and isolated from the one being stripped, is the usual go. Mix in a few financial Synthetics for a few 'un-seeable' Euro sovereign debt defaults, and bingo, taxpayer funded bailout.

With S of QF Act and Sandpit Airlines that have subsidized fuel, getting decent PE returns in a downturn means something else has to give, As rent, leases, fuel, maintenance, airport fees are about the same,
hitting up employees (labour) is the only give point.

But with the Euro scare, I think PE is OFF. Bloody hard or expensive to raise money now, and after Myer, the punters will be suspicious of a new float, and the underwriters will have to be paid well after the QLD toll road fiasco.

 

[JohnK]

Unfortunately it is still legal to sell the foundations and whiteant the super funds....

What a wonderful society we have created....

 

[JohnM]

And the unions are worried about the existing management and structure? :shock: