Qantas chair warns of share price slump if takeover bid blocked

0 Comments | AFP, March, 2007

SYDNEY (AFP) — Australia's Qantas would be dangerously "destabilised" and its share price hit if an 8.8 billion US dollar private equity takeover bid was blocked, the airline's chairwoman warned Wednesday.

Margaret Jackson told the Australian Financial Review in an interview that if the bid did not proceed, the 40 percent of shares held by hedge funds would be dumped on the market.

"If anyone thinks this will happen without affecting the (share) price then they have a mental problem with how the market works," Jackson said.

"Some 60 percent of the share register is now not aligned with the long-term interests of the company and this is very destabilising when you consider it is facing a 13 billion (10.4 billion US dollar) capital expenditure bill and...