Canberra will not protect Qantas

Australian prime minister says country should abide by open market practices.

    Qantas, sometimes called the "Flying Kangaroo",
    may be sold to a  multinational consortium


    In 1995, when Qantas was privatised, the government set rules capping single stake ownership of the airline at 25 per cent, total foreign ownership at 49 per cent, and total ownership by foreign airlines at 35 per cent.
     
    Qantas is in the early stages of buyout talks with US private equity investor Texas Pacific Group and Macquarie Bank, Australia's largest investment firm, Geoff Dixon, chief executive of Qantas, has said. 
     
    Dixon said the foreign ownership stake would be below the 49 per cent cap and possibly below 46 per cent.
     
    Qantas shares have seesawed, jumping as high as 20 per cent after Qantas confirmed the bid.
     
    Details of the proposed deal have not been released but analysts predict it will be in the $8.5bn range.
     
    Dixon said 93 per cent of Qantas workers are employed in Australia and the deal, if finalised, would probably not change that figure.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.