Qantas Soars on Plans to Fend Off Hostile Takeovers Published: Monday, 11 Jun 2012 | 8:33 PM ET Text Size By: Reuters
Qantas Airways has tapped Macquarie Group to defend the airline against a possible hostile takeover after it lost a third of its value last week following a profit warning, a newspaper said on Tuesday. The news sent its stock soaring over 7 percent.
Qantas Chief Executive Alan Joyce has also appointed Citigroup to monitor the company's share register for any raiders, the Australian Financial Review said in a report, without naming any sources.
The newspaper said top executives were not aware of anyone lining up a bid, but Joyce has reactivated an internal defense team, first set up last year when there was talk former Qantas chief Geoff Dixon was working with a team to buy a big stake in Qantas.
Qantas shares hit a record low of A$0.96 last week after it warned it expected to book its first net loss since it was privatized in 1995, blaming deep losses in its international operations, weak travel demand and soaring fuel costs.
The airline recently split its loss-making international operations from its profitable domestic business, which is battling an aggressive expansion by Virgin Australia.
QAN Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
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