Very interesting insight into the thinking and practices of hedge funds and how one clever clogs derailed a multi billion dollar bid for Qantas, by betting wrongly on the level of acceptances that were in the market and sleeping through the deadline. In the process, he deprived some of his best hedge fund buddies of millions in a major miscalculation. I mean what is a few hundred million between friends. Very healthy I say. From what I read, this was just a short term hurdle to keep the bid alive and to allow more speculation to continue. Australia's takeover panel has kyboshed plans to keep it going, making the very good point that all the players had plenty of notice and new well the deadline. The scheming and gaming came back to bite them big time. Very embarrassing for all parties.
The whole thing seemed very sus all the way through, with huge bonuses on the table for management and lots of commissions, fees and profits for advisors. That, along with the likely reorganisation (job losses and off shore exporting of services) required to make the economics of the deal work to return profits to the private sector backers, it may well be not a bad thing.
At a very basic level many Australians want Qantas to remain an Australian company, not a play thing for hedge funds. It is a national icon and this despoils it.
3 comments:
Colin
Before the bid was announced, 45% of Qantas was held in foreign hands. After the bid, that proportion of foreign holdings would not change.
Anyway, who cares who owns Qantas? The only thing that matters is that competition is fierce, keeping down fares and opening up more routes.
And re Heyman - this was no clerical error. He thought he could get a seat on the Board and was told to f**k off.
Thanks for the insight. Glad you have the inside scoop. I do realise capitalism is just that and you certainly know a hell of a lot more about that than I do. I find the gaming very interesting. Having lived in Singapore and spent a lot of time on Singapore Air and enjoying it, I was very surprised when my colleague went to work in the back office doing some project work and couldn't believe how dysfuntional things were there. All we consumers really want is a comfortable seat at a fair price and a plane that will likely get us there.
All we consumers really want is a comfortable seat at a fair price and a plane that will likely get us there.
and amen to that.
the best (no, only) way to ensure this is competition between airlines.
and this is why the Oz govt must pursue an Open Skies policy.
Hedge funds currently own over 50% of Qantas. Why should their profits be protected and the Oz consumer shafted?
Post a Comment