U.S. News

Airline Partners Says They Will Not Raise Qantas Offer


Airline Partners Australia (APA), a consortium bidding for Australia's Qantas Airways, said on Friday it would not increase its US$8.7 billion buyout offer for the airline.

"The offer price of A$5.60 cannot, and will not, be increased in the absence of an alternative proposal being announced," APA said in its bidder's statement to Qantas shareholders.

Qantas last month agreed to a takeover offer from APA, a consortium led by Macquarie Bank and private equity firm Texas Pacific Group in the world's biggest airline takeover.

APA said the deal would be funded by A$10.654 billion ($8.3 billion) in debt and A$3.528 billion of the consortium members' own money.

The senior debt facilities included at least US$7.87 billion and 375 million euros ($488.3 million), and a US$750 million revolving credit facility, the bidders' statement said.

The consortium said the financing package would include about A$3 billion in cash reserves and available cash facilities to allow the airline to weather any unexpected events.

APA reiterated it supported a A$10 billion investment program over the next five years and Qantas' plans to buy more than 70 new aircraft. The consortium also includes Allco Equity Partners, Allco Finance Group and Canadian investment firm Onex Corp.

If the offer is successful it will be the world's largest airline takeover.