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SYDNEY - Takeover target Qantas today said it would expand its trans-Pacific network business with new flights to New York, as another investment bank reported it had bought up a substantial stake in the airline.
Deutsche Bank today revealed it had 8.4 per cent of the shares in Qantas, which is the target of an A$11.1 billion ($12.7 billion) takeover bid by the private equity-backed Airline Partners Australia (APA) consortium.
But the success of the deal in its current form is uncertain after Balanced Equity Management, which holds about four per cent of Qantas, last week warned it would reject the bid.
The firm's actions sparked speculation it could be joined by others, in particular UBS Nominees Pty Ltd which has a 10.4 per cent interest.
APA's offer of A$5.45 cash bid, excluding a 15 cent special dividend to be paid by Qantas, is conditional on the receipt of 90 per cent acceptances and could be blocked by recalcitrant institutional investors holding more than 10 per cent.
Meanwhile, Qantas said today it would increase flights to New York to once a day, from five a week, from August.
The addition of two extra New York services each week, operating from Sydney via Los Angeles, would give business travellers more choice and access to markets on the US east coast, it said.
"Frequency of service is particularly important for business travellers, and offering them a daily flight to New York will provide the flexibility they need to plan their schedules," executive general manager John Borghetti said.
Support for the route had been very encouraging, allowing Qantas to increase its New York services twice in the past 18 months, he added.
Qantas will also operate a minimum of 35 flights a week to Los Angeles, five a week to San Francisco, three a week to Honolulu and three a week to Vancouver via San Francisco.
APA's offer closes on April 20.
- AAP
