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SYDNEY - Two big shareholders in Qantas Airways are unwilling to sell their stakes at the price offered by a private equity consortium, fuelling doubts the US$8.7 billion ($12.5 billion) takeover will go through, the Australian Financial Review reported today.
UBS Global Asset Management, which holds a 6 per cent stake, is unwilling to sell while Balanced Equity Management, with 3 per cent, is unconvinced about whether to accept the offer, the paper said on Wednesday, without citing sources.
It said some shareholders have argued that as long as Qantas' operating outlook remained strong, the offer of A$5.60 a share was not high enough. The consortium has said it will not raise the offer, which is conditional on it getting 90 per cent of the shares.
Qantas raised its profit forecast on February 8 due to falling fuel costs and increased demand for travel.
Australia's Foreign Investment Review Board (FIRB) is reviewing the bid for the national icon by the consortium, which is led by Macquarie Bank Ltd.
The consortium, which also includes private equity firm Texas Pacific Group, Allco Equity Partners, Allco Finance Group and Canadian investment firm Onex Corp, has won the support of the Qantas board.
- REUTERS
