Qantas believes foreign shareholding below 49 pct

Sydney, May 30: Australia"s Qantas Airways Ltd. said on Wednesday it did not believe foreign ownership of the airline was above the allowed 49 per cent limit following a failed takeover bid, but was conducting further checks.

Qantas said a check of its shareholding on May 4 found that foreign ownership of its stock at that date was just below 50 per cent but there had been heavy trading in its stock since that date.

""Some 55 per cent of Qantas shares have traded since 4 May and Link Market Services, our share registry, believes this figure may already be out of date,"" Chief Executive Geoff Dixon said in a statement.

An A billion ( billion) bid for Qantas by a buyout group including Macquarie Bank Ltd collapsed on May 4 after failing to get enough shareholder acceptances to extend the offer.

The Australian government had asked Qantas to clarify whether it breached foreign ownership rules during the takeover which saw a massive turnaround in Qantas shares. Local media said at one stage hedge funds owned more than 60 per cent of the stock.

Dixon said market intelligence indicated selling since May 4 had been by investors associated with foreign hedge funds and there had been substantial buying by Australian interests.

""We believe our current register is in compliance with the Qantas Sale Act,"" Dixon said.

The airline was conducting another check on its register and working with lawyers to look at other ways of monitoring foreign shareholding.

Rules set when Qantas was privatised cap any single stake in the airline at 25 per cent and total foreign ownership at 49 per cent.

Qantas shares were trading up 0.5 per cent at A.76 at 0105 GMT in a slightly weaker overall market.

Reuters >