news flash deal blocked

Takeovers body blocks Qantas deal

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* May 06, 2007

THE Takeovers Panel has effectively blocked the private equity consortium Airline Partners Australia's takeover bid for Qantas, putting an end to the $11.1 billion deal.

The takeovers umpire has refused to look at the matter after the APA consortium asked it to allow a late acceptance for the offer, which would have let the bid proceed to the next stage.

APA has indicated that it intends to seek an urgent review of the decision, the panel said.

The fate of the takeover bid for Australia's largest airline has hung in the balance since Friday, when a large US hedge fund offered its shares to the group after an important deadline.

The bid effectively failed on Friday night when shareholder acceptances did not reach the 50 per cent acceptance level required to extend the offer by the 7pm AEST deadline.

APA applied to the Takeovers Panel to allow the belated acceptance from the US hedge fund, which the consortium believed gave it claim to 50.6 per cent of Qantas shares.

"The panel has decided not to commence proceedings in relation to APA's application," the panel said in a statement today.

The decision effectively scuttles APA's takeover offer for the airline.