Bidders seek govt approval for Qantas offer

Sydney, Feb 5: A buyout group bidding .7 billion for Australia's Qantas Airways Ltd. said on Monday it had voluntarily applied to the government's Foreign Investment Review Board (FIRB) for a review of the takeover.

The consortium, Airline Partners Australia (APA), led by Macquarie Bank Ltd. and private equity firm Texas Pacific Group [TPG.UL], said it wanted to give accountable undertakings to the government on its plans for the airline.

''We want to provide assurances that our experienced group of aviation investors and patient approach to investment in the aviation sector will provide a sound foundation for Qantas to grow and prosper,'' APA director Bob Mansfield said in a statement.

The consortium, which is seeking to allay fears about job cuts and the fate of the airline -- a national icon dubbed the flying kangaroo -- with a general election approaching, had said on Friday it was still considering a government request to lodge an FIRB application.

It said it had no legal obligation to seek FIRB clearance.

The bidding team has been carefully shaped to ensure it meets rules requiring the airline to remain majority Australian-owned.

Treasurer Peter Costello, who has the right to reject applications to the FIRB if he considers an investment to be not in the public interest, said on Monday the board would look carefully at the bid.

''The scrutiny will be very vigorous,'' Costello told reporters. ''The statutory time period is 30 days.'' He said under existing laws, the government would not allow Qantas to become majority foreign owned or foreign controlled.

Qantas shares fell 0.4 percent to A.37. The broader market <.axjo> was down 0.2 percent.

Reuters>