Private Equity take over of QF... =(

[gumpy]

Qantas focuses on revamp amid takeover talk | Profit doubles

What do you guys reckon? QF trying to put the unions in their place? Hope it's not a genuine bid...
I'm worried about my QFF points balance...

 

[drron]

If you find anyone who is prepared to take over an airline in the current economic climate could you kindly send them my way.I have picked up a couple of bridges I would like to hand off to them.

 

[gumpy]

If you find anyone who is prepared to take over an airline in the current economic climate could you kindly send them my way.I have picked up a couple of bridges I would like to hand off to them.

I can sort of see why they would go again for it though...

last time they went for 11bn now they're eyeing 3.5bn... that's a bargain...

 

[medhead]

Actually the numbers in The Australian were pretty compelling.

• Current share price value = $3.5 Bill
• QFF value $3 Bill
• JQ $4B
• QF several billion

Bit of profit to be had in those numbers.

 

[drron]

Actually the numbers in The Australian were pretty compelling.

• Current share price value = $3.5 Bill
• QFF value $3 Bill
• JQ $4B
• QF several billion

Bit of profit to be had in those numbers.

Though my broker thinks differently to you.
QF share price-$1.45.Value-$1.58-not too much profit there.
Interestingly with DJ-Share price-$0.26.Value-$0.07.

 

[antycbr]

Actually the numbers in The Australian were pretty compelling.

• Current share price value = $3.5 Bill
• QFF value $3 Bill
• JQ $4B
• QF several billion

Bit of profit to be had in those numbers.

Looks like it's definitely a case of the parts worth more than the whole. Though you have to wonder about the value of QFF if QF proper is too difficult/unattractive to redeem on. Aeroplan is an example of a detatched FF program from the parent airline - Air Canada.

 

[medhead]

Though my broker thinks differently to you.
QF share price-$1.45.Value-$1.58-not too much profit there.
Interestingly with DJ-Share price-$0.26.Value-$0.07.

I didn't say anything about the share price. But did use the wrong words. That is $3.5 billion, the market capitalisation, based on the current share price, I assume. Separately there is more value in each business than the purchase price based on that market capitalisation. That is when PE gets interested.

Oh and those were the numbers in the paper, so I can't even claim it as my thinking.

 

[harvyk]

AJ extricating QFi now makes more sense.
If by making the parts worth more than the whole, advertising which are the good parts vs which are the bad parts pushes up the total price which can be gained.

Me thinks this is probably the reason for AJ's AN mark 3 talk when talking about QFi... Of course sell off the QFd \ JQ \ QFF parts of the business probably won't go against the QF Sale Act, and thus leave QFi to die a preventable death, again not against the QF Sale Act as "companies" do die.

 

[ftm]

The figures I had heard were that as soon as the share price fell below about $1.50, the assets were worth more than the market cap, hence it begins to become the focus of potential PE bid.

Wonder if we will see a photo of AJ gleaming as he hugs Leigh Clifford at the announcement (just like we did with GD and MJ)?

 

[JohnK]

I certainly hope this is just a rumour.

Tell 'em they're dreaming....

 

[dk4]

I certainly hope this is just a rumour.

Great Time for a VA status match eh?! Just incase...

 

[JohnK]

Great Time for a VA status match eh?! Just incase...

Done.

Regardless of whether you love them or hate them the skies will not be the same if Qantas is not flying. It is not the same with all these cheap Asia imitations they are trying to create and if private equity ever got a hold of Qantas it would never be the same anyway.

 

[elbarto]

AJ extricating QFi now makes more sense.
If by making the parts worth more than the whole, advertising which are the good parts vs which are the bad parts pushes up the total price which can be gained.

Me thinks this is probably the reason for AJ's AN mark 3 talk when talking about QFi... Of course sell off the QFd \ JQ \ QFF parts of the business probably won't go against the QF Sale Act, and thus leave QFi to die a preventable death, again not against the QF Sale Act as "companies" do die.

If AJ and the board know of a potential takeover deal and are talking down the price to see it go through then they can all go rot in a prison cell for share price manipulation. Perhaps they've been taking advice from Rodney Adler?

 

[connieguy]

If AJ and the board know of a potential takeover deal and are talking down the price to see it go through then they can all go rot in a prison cell for share price manipulation. Perhaps they've been taking advice from Rodney Adler?

Interesting comment to Ticki Fullerton by Geoff Dixon on Late Line Business tonight (07/09/2011). No comment by Dixon on QF equity buy out but the group does exist. Lots of smiles from Dixon.

 

[drron]

But he did say their investment vehicle hadn't bought a single share in QF when asked about the buying of QF shares recently.

 

[openseat]

Saw the interview as well. It seemed to me that GD was sending some sort of message.

You can't help but wonder what just went on behind choosing AJ over JB. It's also tantalising to think what would QF have looked like under JB rather than AJ.

 

[travelislife]

Saw the interview as well. It seemed to me that GD was sending some sort of message.

You can't help but wonder what just went on behind choosing AJ over JB. It's also tantalising to think what would QF have looked like under JB rather than AJ.

Is tantalising, although CEO's definitely set the strategic direction a company is going to take it has to be endorsed by the board each year, so the board are somewhat implicit in what AJ is doing, now if JB had become CEO would the board have accepted his proposal if he said, "we are going to open more routes, throw money at it and take a risk by competing head on with the Asian/Middle Eastern Carriers", not sure if it could have happened with current board. But I am getting OT here and this is an entire different thread.