Flight Centre has issued a halt to trading in its shares ahead of today’s shareholder meeting, advising the Australian Stock Exchange that the company was unlikely to receive the 75% majority of votes required needed for the privatisation plan to proceed.
Similar to the scenario in which Qantas could find itself, Lazard Asset Management, which owns approximately 28% of the voting shares to, is believed to be blocking the bid pushing for a better offer.
A statement yesterday by Flight Centre said, “Flight Centre has received proxy advice from its share registrar which indicates the Non-Founders Scheme Resolution is most unlikely to be passed at Wednesday’s meeting by the requisite 75% majority of votes.”
The Company’s statement also said added that it was “considering the implications” adding that “company and its advisers were engaged in ongoing discussions”.
Report by The Mole
