Qantas power struggle heads for 2013 showdown that may result in Jetstar IPO

Victoria
By Victoria November 19, 2012 15:29

Qantas power struggle heads for 2013 showdown that may result in Jetstar IPO

Peter Gregg, former Qantas CFO, and venture capitalist Mark Carnegie have held discussions with unions and key investors as they try to put together a rival plan to challenge Qantas CEO, Alan Joyce, in a bid to return capital to shareholders. The aim is to secure a large group of investors that will most likely include Geoff Dixon, former CEO and billionaire Lindsay Fox, with a view to pressurizing management for a Jetstar IPO and Qantas Frequent Flyer sale.

There is to date no firm proposal in place but all sources agree that it is time to work on a different approach that puts shareholders first at Qantas. It is also confirmed by sources that around 20% of the Qantas shareholder base is receptive to the message behind this push for a new way forward at the airline. 20% would ensure that the group have good traction.

It is important to remember that the big three players here are the old 2006 line-up of Dixon (CEO), Gregg (CFO) and Carnegie (the money) worked on the failed private equity bid for Qantas in 2006 which pitched-in at $5.60 a share. Laughed at then, but way above what could be secured today. The group see a possible miscalculation by current Qantas management in their strategy towards Asian economic hubs, it has been mentioned that a tie-up with Cathay Pacific would be a priority as would 787 deliveries for Qantas operations.

The funding is there, it is now all about shareholder support and this in the end would mean a u-turn of views at Balanced Equity Management which has been a vocal supporter of Alan Joyce.

Qantas shares closed at $1.26 on Friday; expect them to go up…..As for Emirates, they are looking good on their Qantas tie timing either way but you can bet that the senior team over in Dubai will be keeping quiet on the whole thing until the dust settles. .

Victoria
By Victoria November 19, 2012 15:29
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