Australian flag carrier Qantas Airways yesterday turned down a A$10.9 billion (US$8.6 billion) takeover bid from a private equity consortium, sending its shares into a nosedive.
Qantas said the A$5.50 a share cash offer came from a consortium comprising Australia's biggest investment bank, Macquarie, US-based private equity firm Texas Pacific Group, Australia's Allco and Canadian group Onex.
It said the offer contained a number of complex conditions, including a "break fee," which Qantas would have to pay to the bidders if the deal fell through.
"The non-executive directors consider that the terms of the proposal are not acceptable," Qantas said in a statement to the Australian Stock Exchange.
The market had not expected the rejection, with reports early yesterday saying Qantas was poised to accept the offer.
Qantas shares plummeted 6 percent when trading in the stock resumed after the announcement, falling A$0.30 to A$4.93 before recovering to close down A$0.14 or 2.67 percent at A$5.09.
Shaw Stockbroking analyst Brent Mitchell said the A$5.50 price had been widely expected as an opening bid but the real sticking point appeared to be the conditions demanded by the consortium.
"The price is what most people were expecting but it's the conditions that go along with it," he said.
SCHEDULE: The delegation is due to meet with President Tsai Ing-wen this morning and witness the signing of an MOU on bilateral health cooperation in the afternoon US Secretary of Health and Human Services (HHS) Alex Azar yesterday arrived in Taipei aboard a US government plane at the head of a delegation that is the highest-level visit by a US official since Washington switched diplomatic recognition to China in 1979. Azar’s flight landed at Taipei International Airport (Songshan airport) at 4:48pm, nearly one hour earlier than scheduled, the Ministry of Foreign Affairs said. The apron where it landed is reserved for military aircraft, the Songshan Air Force Base Command said. The members of Azar’s delegation included HHS Assistant Secretary for Preparedness and Response Robert Kadlec, HHS Chief of Staff Brian
CHINESE FIGHTERS: Beijing marked the US Cabinet member’s visit by briefly sending two warplanes across the median line of the Taiwan Strait yesterday morning President Tsai Ing-wen (蔡英文) yesterday met with US Secretary of Health and Human Services Alex Azar in the highest-level official meeting between the two nations since 1979. “It is a true honor to be here to convey a message of strong support and friendship from [US] President [Donald] Trump to Taiwan,” Azar said during the open portion of his courtesy call to the Presidential Office, which was streamed live online before Tsai and Azar held a closed-door meeting. “Taiwan’s response to COVID-19 has been among the most successful in the world, and that is a tribute to the open, transparent,
Taiwanese-independence advocates yesterday accused former president Ma Ying-jeou (馬英九) of breaking national security laws and called on the judiciary to investigate after his statement that “China will wage a battle, which will be quick and will be the last battle for Taiwan.” Ma showed his true colors “as a mouthpiece of the Chinese Communist Party” in his speech on Monday when he said the “first battle will be the last,” Taiwan Republic Office (台灣國辦公室) director Chilly Chen (陳峻涵) said. “Ma is threatening Taiwanese by claiming that Beijing will launch a quick invasion of Taiwan, but that the US military will have no
CHASTISING CHINA: Taiwan’s approach to combating the coronavirus stands in stark contrast to the country where the outbreak began, the US health secretary said International organizations are not the place to play politics, especially when the matter relates to healthcare, US Secretary of Health and Human Services Alex Azar said in Taipei yesterday, adding that the region and the world are safer because of Taiwan’s commitment to health promotion. On the third day of his visit, the highest-level visit by a senior US Cabinet official in decades, Azar met with Minister of Foreign Affairs Joseph Wu (吳釗燮) at the Grand Mayfull Hotel in Zhongshan District (中山) yesterday morning, following his meetings with President Tsai Ing-wen (蔡英文) and Minister of Health and Welfare Chen Shih-chung (陳時中)