Rumours in the Australian press have suggested that a consortium led by former Qantas boss Geoff Dixon and backed by multi-millionaire John Singleton could be looking to takeover the Australian flag carrier.
Singleton described the airline as “undervalued” and he has declared that he is ''always interested'' in potential deals.
The crash in the company’s share price value now values the company at $1billion, while the company has $3billion in cash and assets – that makes it an attractive target.
Singleton told reporters: “'I'm interested in anything … I'll buy anything that's got $3 billion in cash. I wouldn't be worried about Qantas,'' he said. ''Qantas has got a future.''
He refused to confirm any involvement in a consortium bid for the airline.
Qantas head Alan Joyce has prepared a defence team to fend off any hostile takeover attempts but he confirmed that the airline had not received any takeover offers. Macquarie Bank is advising Qantas on its defence strategy, while Citigroup is keeping a close eye on any unusual trading activity of the airline’s shares.
The main fear of any takeover by a private equity consortium is that it would likely result in the break up of the airline, with the sale of lucrative assets such as its Frequent Flyer program, as well as subsidiaries Jetstar and QantasLink.