Sydney - Arabstoday
Qantas Airways sought to play down talk of a takeover bid on Wednesday as it focuses on expanding in Asia and taming labour unrest over its plans to slash jobs in Australia.The Australian government said it was determined that majority ownership of the country’s flagship airline should not fall into foreign hands after speculation resurfaced that private equity firms may be circling the company.The takeover speculation, triggered by a newspaper report and after Qantas shares hit near-record lows this week, came as Qantas reported its full-year net profit more than doubled, but warned market conditions were volatile and challenging.“As far as we are concerned, there is no formal or informal bid on the table and no one has approached us, so we can only regard it as speculation,” Alan Joyce, the airline’s chief executive, told reporters at the airline’s profit briefing. He was responding to a report in The Australian newspaper that said the issue had been discussed at senior levels of government, with both the transport minister and treasurer inclined to oppose any private-equity bid.The government did not confirm the report, but said it was determined to keep majority ownership in Australian hands. “The Australian government’s position is very firm. We are determined to ensure that Qantas stays as a majority-owned Australian airline, one that is able to operate effectively,” Transport Minister Anthony Albanese told reporters on Wednesday.Foreign ownership of Qantas is capped at 49 per cent under the Qantas Sale Act. The airline was almost acquired by a consortium of local and offshore private equity firms and other bidders in 2007, but shareholders narrowly defeated the proposal. Some investment bankers played down the idea of a bid. “Look at their debt. There is no way a private equity firm could get up the money. After what happened last time why would you bother?” one source familiar with the industry said. Qantas, whose full-year earnings were in line with forecasts, warned it faced challenging conditions in 2012 as it battles labour unrest, higher fuel prices and losses at its international operations.The airline’s shares touched a near record low this week, prompting speculation the company was ripe for a takeover. The stock jumped 3.9 per cent when it opened on Wednesday but gains quickly fizzled after the denial of any bid approach. From / Gulf Today