The takeover of Qantas has been put in severe jeopardy with a key shareholder saying it will vote against an $11 billion private equity bid because the bid undervalued Qantas.
Balanced Equity Management, which owns 4% of Qantas, has advised the Australian Stock Exchange that, “given the current level of the share market, we do not intend to accept the bid of $5.45 per share in respect of the shares we manage on behalf of clients”.
In response, Airline Partners Australia sadi that they are considering a range of alternatives in light of the announcement with APA saying previously that it will not raise its bid, which has only been accepted by under 30% of Qantas shareholders, with the deadline for shareholders to vote on the offer now extended to April 20.
Report by The Mole
