Qantas increases Hazelton bid

By Phil Boeyen, ShareChat Business News Editor

Thursday 4th January 2001

Qantas has upped its bid for Australian regional airline Hazelton from A$1.20 to A$1.50 a share and says it is continuing to talk with an industry watchdog about the airline's structure.

The new bid is higher than the A$1.35 offered by Air NZ (NZSE: AIRVA) owned Ansett, who announced this week it had increased its holding in the company to over 35% after buying the Hazelton family's shareholding.

Qantas boss, Geoff Dixon, says the new offer represents a premium of 11% over the Ansett bid.

"We are announcing our increased offer because it is important that the remaining Hazelton shareholders are aware of our commitment to acquiring the airline."

The Qantas offer is conditional on several issues, including receiving approval for the takeover from the Australian Competition and Consumer Commission, which has opposed the Hazelton takeover bids because of fears they would reduce competition.

Mr Dixon says Qantas has had preliminary discussions with the ACCC and is "continuing to determine whether it is possible to develop a structure that is acceptable to both parties."

He says the acquisition of Hazelton is consistent with the Qantas' strategy of providing a comprehensive national network extending across every state and mainland territory.

"Significantly, this acquisition would complement the operations of our subsidiary, Eastern Australia Airlines, which serves 15 ports and employs more than 430 people throughout regional NSW."

Mr Dixon has urged Hazelton shareholders not to accept the Ansett offer without first hearing whether the ACCC was prepared to approve any takeover of Hazelton.

The ACCC is concerned that if Qantas gained control of Hazelton it would account for 60% of the NSW regional air services market and 55% of the landing and take off slots at Sydney Airport. It is equally worried that if Ansett gained control it would account for 62% of NSW regional air services and 50% of the Sydney slots.

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