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APA admits likely Qantas defeat | |
(about 2 hours later) | |
A consortium trying to buy Australia's Qantas Airways has admitted that it does not appear to have gained sufficient shareholder support. | |
Airline Partners Australia (APA) said it seemed that it had not gained the 50% of Qantas shares it was required to own before a 0900 GMT Friday deadline. | |
It added that should this is confirmed, then "APA's offer for Qantas Airways will not proceed". | |
APA's $A10.8bn ($8.9bn; £4.5bn) bid had faced strong opposition in Australia. | |
'Job cut fears' | |
The APA consortium is majority led by Australian bank Macquarie, but also includes US buyout giant Texas Pacific and Canadian firm Onex Corporation. | |
A number of senior Australian politicians have attacked the takeover attempt, fearing that APA will both end a number of internal routes, and also migrate jobs to South Asia. | |
They also objected to the involvement of overseas firms in such an Australian company. | |
However, the Australian government has backed the deal, and APA had moved to alleviate fears over reduced fights and potential job cuts. | |
With more than 36% of Qantas shares in its hands by the end of Thursday, APA had been counting on a late surge in shareholder support. | |
Yet this appears to have failed to materialise, with media reports in Australia suggesting it only gained 46% acceptance. | |
If APA had passed the 50% mark before the Friday deadline, it would then have had another two weeks to get the figure up to 70% - the level at which it would be allowed automatically to buy out the remaining shareholders. | |
It has been offering $5.45 per share for the Australian airline, dubbed the Flying Kangaroo. | |
APA first announced its interest in Qantas six months ago. |