KEY POINTS:
The board of Qantas must now give clear guidance on the airline's future to ensure a failed takeover bid does not become a corporate fiasco, Australian Transport Minister Mark Vaile said today.
The A$11 billion ($12.45 billion) takeover bid from Airline Partners Australia collapsed at the weekend after shareholder acceptances for the offer failed to reach 50 per cent.
There are now concerns that the airline has breached its foreign ownership cap because of a buy-up of hedge funds by overseas investors.
Overseas interests are not permitted to own more than 49 per cent of Qantas, but some analysts have suggested share dealing related to a failed takeover bid could have seen it go above that level.
Mr Vaile has written to Qantas management to remind them of their responsibility to maintain majority Australian shareholders.
He said the failed takeover was already regarded as a corporate fiasco in the eyes of the public.
"I suppose in public arena that is one of the concerns and I'm sure it's one of concerns of shareholders," the minister told ABC Radio today.
"But, in the marketplace, publicly-listed companies are open to takeovers ... this has been a highly publicised process because it's one of Australia's icon companies."
And, he said it is now vital Qantas ensures that its future is clear.
"I think that it's now incumbent upon the board and the management to give certainty and clear guidance as to the way forward to both shareholders and the travelling public," he said.
- AAP
