Airline Australia Partner's (APA) $11.1 billion bid to buy Australia's flagship airline Qantas has spectacularly collapsed after a weekend of indecision and confusion.
The Macquarie Bank-led consortium, which included US private equity Group Texas Pacific, had a last minute appeal turned down by the Takeovers Panel after it failed to garner enough support before Friday's 7 pm deadline.
Many thought on Saturday, however, the deal could be revived after a US-based hedge fund operator dramatically offered to accept the $5.45 per share offer just hours after the deadline had passed.
Samuel Heyman had built up an 11 per cent stake in Qantas and his acceptance took the bid over the required 50 per cent acceptance level needed for the bid to succeed.
However, the Takeovers Panel refused to count the late acceptances and by doing so scuppered the bid.
"The panel has decided not to commence proceedings in relation to APA's application," it said in a statement.
APA has demanded an appeal to this decision, which could mean the bid is revived yet again.
"Airline Partners Australia (APA) is seeking an urgent review of today's decision by the Takeovers Panel which has declined to hear APA's application to allow the offer for Qantas to proceed," APA said yesterday.
"APA notes that a majority of Qantas shareholders representing more than 50 per cent of Qantas shares have indicated their support for the offer."
The Takeovers Panel said the body would appoint another group of members to consider the second appeal.
Takeovers panel director Nigel Morris refused to confirm whether or not the bid could still go ahead. When asked he said, "Yes and No".
APA's bid for Qantas has come up against severe opposition from both unions and the market. Two of Qantas' biggest shareholders, including UBS Asset Management and Melbourne based Balanced Equity Management, branded the offer too low.
The consortium was subsequently forced to lower the minimum acceptance rate to 70 per cent from 90 per cent in order for the bid to succeed.
APA needed to reach the 70 per cent acceptance rate in the next two weeks before its loan agreements expired.
