QF chairman announces retirement

[Keith T 2]

http://www.theage.com.au/news/business/jac...8995327961.html

 

Jackson to to quit Qantas board

 

May 17, 2007 - 11:07PM

 

Qantas chairman Margaret Jackson will retire at the company's annual general meeting, the airline announced tonight.

 

Ms Jackson and other Qantas directors have been under pressure to quit since an $11.1 billion takeover bid for the airline by Airline Partners Australia failed earlier this month.

 

The Qantas board had supported the takeover bid.

 

A Qantas spokeswoman tonight said Ms Jackson had informed the board today that she would retire from the board when her term expires at this year's AGM, which is expected to be in November.

 

"An announcement will be made tomorrow confirming ongoing board and management decision on Qantas' plans for the future," the spokeswoman said.

 

Ms Jackson first joined the Qantas board in 1992 and has been chairman of the company since August 2000.

 

She was made a Companion of the Order of Australia in 2003.

 

Before becoming a professional company director in 1992, Ms Jackson was a partner in KPMG Peat Marwick's management consulting division.

 

Ms Jackson has served on the boards of several companies, including Southcorp, John Fairfax Holdings, Pacific Dunlop, Telecom Australia (now Telstra) and the Australian Wool Corporation.

[Sandeep G 1]

well that comment about the "shareholders being idiots" for not accepting the offer was a stupendous way for a chairman to behave... I think they all got a little upset, because with the collapse of this deal, the retirement nest-egg for the Qantas board members has been severely dwindled..

 

Don't forget, they ALL negotiated to have stakes in the new Qantas had the deal gone through... Too many dollars, and absolutely no "Sense" I say.

[Keith T 2]

Hehe well I think it's more the comment about those opposing the APA deal having a "mental problem" with how the market works, that ruffled quite a few feathers.

 

Thing is though - she was going to retire if APA takes over Qantas anyway. I could understand why Dixon and co were so supportive of the deal because they get a huge payout and a portion of the shares. In all fairness they also had a legal duty to shareholders to recommend the deal if it is their reasonable opinion that it offers a good return. But it was never revealed what Maggie was offered - and she was one of the most vocal supporters of the deal...

Edited May 17, 2007 by Keith T

[Pieter C. 5]

Qantas Bid Group Won't Make Fresh Offer

 

May 17, 2007

A consortium that made a failed AUD$11 billion (USD$9 billion) bid for Australia's Qantas Airways said on Thursday it would not launch a fresh offer, denting the airline's share price.

 

The Airline Partners Australia (APA) consortium, which included Macquarie Bank, said it believed a renewed offer on acceptable terms was not likely to succeed.

 

"On that basis APA has decided not to proceed with a renewed offer for Qantas at this time," the group said in a statement.

 

Shares in Qantas, which slipped after the bid failed to secure enough acceptances to proceed last week, fell 2 percent before recovering to be down 0.8 percent at AUD$5.24, about 4 percent below the AUD$5.45 a share bid price.

 

"At the moment shareholders may be expecting improved profits so they really are just going to hang on to the ride," said Robert Hook, a portfolio manager with S.G. Hiscock & Co. "And in addition to that, if someone else is going to come along it's then going to be a bonus."

 

Analysts said Qantas would continue to concentrate on its strategy of growing its low-cost Jetstar subsidiary in Asia under Chief Executive Geoff Dixon, who would have led the airline after the buyout.

 

The Qantas board was also due to meet on Thursday, amid speculation about the future of Chairman Margaret Jackson, who has been criticized for supporting the takeover bid too enthusiastically.

 

Jackson has told local media that she intends to stay on at the airline.

 

The consortium's decision not to launch a fresh bid for Qantas had been expected given a lack of support from the airline's board, the need to negotiate again with bankers and an upcoming Australian election.

 

"At some stage they may look at it again, but there's a lot of deals around and these people have various interests," said Shaw Stockbroking analyst Brent Mitchell.

 

A source familiar with the bid said the consortium -- which included private equity firm Texas Pacific Group, Allco Finance Group, Allco Equity Partners and Canadian investment firm Onex -- had been unwound.

 

The group believed any fresh bid should have been on the same financial terms as the first offer, given the challenges faced by Qantas from new competition, the source said.

 

However, Qantas indicated last week that it would not back a new takeover offer pitched at the same price.

 

"If they come back it would have to be better than AUD$5.45, that's for sure," Qantas Deputy Chief Executive Peter Gregg, who supported the original bid, told the Sydney Morning Herald.

 

The consortium admitted defeat early last week following three days of uncertainty after it failed to get 50 percent of shareholder acceptances for the bid by a Friday deadline.

 

Qantas senior management had supported the initial offer, but it was criticized as too low by key shareholders, who forced the bid group to lower the level of acceptances needed for success.

 

The airline has upgraded its earnings guidance three times in the past year, but faces serious competition from the launch of a rival Australian domestic service by Asian airline Tiger Airways.

 

(Reuters)

 

[Keith T 2]

She's definitely not staying on. Her retirement was breaking, headline news at approximately 2145 AEST. It's been indicated that Qantas will reveal more details tomorrow.

Edited May 17, 2007 by Keith T

[BC Tam 2]

Any hint yet of any mid-east interests in making a fresh bid for QF ?

They have been rather active in the global acquisition trail lately.

I wonder how an Emirates owned Qantas would look ?!

[Keith T 2]

I wonder how an Emirates owned Qantas would look ?!

 

Eek - no way, they'd probably want to take QF out of oneworld. Praise be to alliances [except ScaryTeam ]!

Edited May 18, 2007 by Keith T

[Keith T 2]

http://www.theage.com.au/news/business/pac...8995382212.html

 

Packer quits Qantas board

 

Mathew Murphy

May 18, 2007 - 1:55PM

 

Publishing and Broadcasting Ltd's executive chairman James Packer has quit the Qantas board and will leave alongside outgoing Qantas chairman Margaret Jackson at the airline's annual general meeting later this year.

 

Qantas released a statement from Ms Jackson, saying that Mr Packer had informed the airline's board at Thursday's meeting that he not continue as a Qantas director.

 

''The board will spend the next few months considering my succession and a replacement for James, who has served the board with distinction and diligence,'' Ms Jackson said.

 

Ms Jackson said Qantas chief executive Geoff Dixon would remain in his current position until at least July 2009.

 

Ms Jackson described the past eight months as ''particularly testing''.

 

In December she, alongside Mr Dixon, endorsed the now failed takeover bid for the airline. Up until last night, Ms Jackson had resisted calls for her to resign following the failure of the $11.1 billion Macquarie Bank-led takeover bid.

 

Sir Rod Eddington, the former chief executive of British Airways, told theage.com.au that Ms Jackson's departure would ''draw a line under the (takeover).''

 

Sir Rod came out this week in support of Ms Jackson remaining on as chairman.

 

''I don't think Margaret Jackson should go for a moment. I think she's been a very good chair of Qantas, and it is a brutal and tough business and Qantas is one of very few successful companies in that extraordinary industry and I think she's done a terrific job,'' he said on Wednesday.

[Pieter C. 5]

Qantas CEO To Stay Despite Takeover Collapse

 

May 18, 2007

Qantas Airways said on Friday its Chief Executive Geoff Dixon would stay in the top job until at least July 2009, but two senior board members would leave by the end of the year.

 

Qantas also said it would review its capital management strategies over the next few months following the collapse of a AUD$11 billion (USD$9 billion) buyout bid for the airline.

 

Qantas confirmed Chairman Margaret Jackson would retire by the end of the year, while Australia's richest man James Packer would also resign from the board.

 

The bid by the Airline Partners Australia (APA) consortium, which included Macquarie Bank, collapsed earlier this month after failing to get enough backing from shareholders.

 

(Reuters)