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MELBOURNE - Qantas Airways is expected to announce a takeover offer of around A$10.9 billion ($12.6 billion) from a consortium led by Macquarie Bank this week, possibly as early as today.
Shareholders have been waiting for the offer since the carrier confirmed nearly two weeks ago that it had received a buyout approach from a consortium that includes Macquarie and private equity firm Texas Pacific Group.
Two people close to the transaction said a bid was not far away.
A source close to Qantas said the ball was in the buyer's court. "We would all welcome some resolution to this as soon as possible."
Groups involved in the talks include Allco Finance Group, Pacific Equity Partners and Canadian investment firm Onex Corp. Final stakes in the consortium have yet to be set.
Analysts have speculated that the board of Qantas will hold out for an offer of at least A$5.50 a share, or A$10.9 billion.
Qantas closed down A3c to A$5.23 in a firmer market yesterday.
Air New Zealand shares - which have risen in the past two weeks on talk of the Qantas takeover - rose another 4c yesterday to close at a two-year high of $1.77.
Troy Angus, a portfolio manager with BT Funds Management, which owns 0.43 per cent of Qantas, declined to comment on what would be a fair price, but said the outlook for the airline was strong for this year.
"The operating environment for the business is exceptionally positive. The oil price is stable, if not declining, which is also positive.
"Overall, the earnings of the business look very sound for this year. It's a very favourable starting point."
An offer at A$5.50 would be 26 per cent higher than Qantas' share price before the airline said it had been approached with a buyout proposal.
At that price it would be worth 15.6 times forecast earnings for this year, topping the 12.7 multiple on Singapore Airlines but cheaper than Cathay Pacific Airways at 18.3, according to Reuters data.
- REUTERS
