Qantas 'ripe for equity takeover'

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whatmeworry

whatmeworry

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A LEADING airline investor believes Qantas is the ''perfect scenario for private equity'' firms making a takeover bid because it has attractive assets in Jetstar and is considerably cheaper than a year ago.
Richard Branson's right-hand man, David Baxby, said it would make sense for large investors to be ''running the numbers over [Qantas] because it has come down so far, so fast''.
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Qantas 'ripe for equity takeover'
 
isn't that exactly what they want? they probably leaked this article as publicity for takeover :)

"attractive assets in jetstar"?? lol try loss-making
 
I think the foreign ownership restrictions might make a private equity bid more difficult?
 
Not surprisingly a Virgin shareholder puts this out.
If Qantas share price / multiple goes up, Virgin will likely follow.

If Qantas does get taken out, management disruption and customers shifting away from a private equity owned company will undoubtedly help Virgin.

The funny thing is, Australian (and international) super and mutual funds are they main investors in Qantas today, but also in the private equity funds, it's just round and round in circles.
 
Both Qantas and Virgin shares are pretty cheap at the moment so it was a surprising article commenting on Qantas.
I would think Baxby would have his hands full trying to make a pound or two out of a very difficult business of moving passengers around the world.
 
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Zzzzz....similar murmurs have been doing the rounds ever since the QF share price hit $2. So far no private equity investors have thought it 'attractive' enough to bother with. Maybe they are all just missing a trick here and someone is kind enough to point it out. Or maybe they are equity investors with $$ for a reason, they know a good deal when they see one and that isn't it.
 
Maybe with Virgin shares in the dumpster as well he might have wanted his shares to rise as well.
 
Qantas takeover rumours persist

Qantas takeover rumours persist - Airline News - etravelblackboardasia.com

Tuesday, 20 November 2012

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Qantas’ stock continues to suffer amidst talks of a takeover.​
"A syndicate of elite businessmen has Qantas anxious about a possible management overhaul if the consortium is capable of securing a significant portion of shares in the troubled airline.
Former Qantas chief executive Geoff Dixon, financier Mark Carnegie, adman John Singleton and Leighton finance boss Peter Gregg are among those interested in gaining control of Qantas.

 
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Have you got the source for that article TiredOldFlyer? There doesn't appear to be any links.
 
I have edited the post to meet guidelines and added the reference.
 
Aside from the foreign ownership hurdles, as I understand it the Private Equity business model relies on cheap debt to raise funds to buy undervalued assets, could it be that the credit markets are too tight/locked up for PE to proceed?
 
All I can say is I hope they know what they're doing.. Qantas elites (in general, not saying they all have) have stuck by the airline through all the changes over the years(this is proved by the still high market share in dom market), but I think a PE buyout would kill the airline.
PE buyouts normally rip the guts out of a company, sometimes they succeed sometimes they don't, but from a customers point of view its never the same.

Just look at Myer, it was one of the grandest stores and well known for the best customer service.
Since PE buyout, the guts has been ripped out many staff left or got sacked, now i'd rate service the same if not worse than Big W, but still charging sky-high prices.
 
It is interesting that IF GD is involved, he is the one who led QFi to where it is today - and now he is suddenly the expert on fixing it ;)

Either way I like how the focus has the conversation squarely on expanding QF.
 
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