Australia Takeovers Panel blocks Qantas bid

Sydney, May 6: Australia's Takeovers Panel on Sunday refused to hear an appeal by the group bidding for Qantas Airways Ltd to allow a late shareholder acceptance, effectively killing off the A billion ( billion) takeover bid.

The panel rejected an application by the bid group, Airline Partners Australia (APA), to allow last-minute backing from a large U.S. investor that would have given it enough shareholder support to extend the world's largest airline buyout.

''The Panel has decided not to commence proceedings in relation to APA's application,'' it said in a statement.

APA, which includes Macquarie Bank Ltd. and private equity firm Texas Pacific Group, said in a statement it was seeking an ''urgent review'' of the decision.

The Takeovers Panel said it was appointing a sitting panel to consider the review application.

APA said on Saturday it had received last-minute backing from the U.S. investor for the takeover, giving it just enough acceptances to extend the offer, but about five hours after a Friday evening deadline for acceptances to come in.

The 11th hour acceptance prompted the buyout group to appeal to regulators to keep the bid alive. APA had earlier said it appeared that less than 50 percent of Qantas shareholders had accepted the bid, meaning the takeover would not go ahead.

The sale of the national icon, dubbed the Flying Kangaroo, has faced political and strong union opposition, but was backed by the Australian government as well as Qantas management.

APA needed to get 70 percent of acceptances to push the deal through, although 50 percent would have allowed it to extend the offer for two weeks.

APA said that including the late acceptance from the U.S.

investor, it has gained control of 50.6 percent of the airline's shares.

Reuters>