Qantas bidder lowers shareholder acceptance level
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SYDNEY, April 12 (Reuters) - A consortium bidding for Qantas Airways Ltd. (QAN.AX) reduced its shareholder acceptance requirement to 70 percent from 90 percent on Thursday in a bid to salvage its A$11 billion ($9 billion) takeover of the Australian carrier.
The consortium, which includes Australia's Macquarie Bank Ltd. MBL.AX and private equity firm Texas Pacific Group [TPG.UL], also said it would extend its A$5.45 a share offer for the airline to May 4.
The consortium, Airline Partners Australia (APA), negotiated the change in conditions with banks financing the deal after some key shareholders said they would not back the offer, threatening the world's largest airline takeover.
"By effectively lowering that condition to 70 percent, shareholders can be confident that the offer will be successful," APA director Bob Mansfield said in a statement.
Qantas said its financiers had agreed a new facility with an initial term of three years and extendable to five years.
Qantas shares rose 1.5 percent to A$5.39 at 0557 GMT.
Analysts said the lower acceptance level meant it was likely Qantas would remain listed after the takeover, but there could be tensions, with the new private equity owners prepared to take more risks to grow the company than some existing shareholders.
"These tensions will reflect different risk appetites, and they in turn will likely reflect the preparedness of the various shareholders to put capital at risk to drive the company to its full growth potential," Fabian Babich, an analyst at brokerage BBY said in a note to clients.
The buyout consortium also includes Allco Equity Partners AEP.AX, Allco Finance Group AFG.AX and Canadian investment firm Onex Corp. (OCX.TO).
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((Reporting by Michael Smith, editing by James Thornhill; Reuters messaging: james.thornhill.reuters.com@reuters.net, tel: +61 (02) 9373 1817)) Keywords: QANTAS TAKEOVER
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