Qantas shares rocketed to their highest close in seven years yesterday as the Macquarie Bank led bid for the airline continued.
Macquarie Bank and Texas Pacific Group are finalising an offer, with analysts saying that they expect the consortium to offer $5.50 a share for the national airline, making it worth $11 billion, but while others suggest that the price could go as high as $6 a share or $12billion, it is considered that would be expensive for a company so vulnerable to high oil prices, intense global competition and the threat of terrorism.
Qantas shares rose 21c to $5.26, with Qantas’ 140,000 shareholders who bought stock just five months ago are now sitting on a paper profit of more than 80%.
Qantas confirmed recently that the Macquarie led consortium had contacted the airline regarding a takeover, but despite the share price movement, analysts and brokers feel that the takeover would not take place until after Christmas.
Report by The Mole
