Australian airline Qantas is still to determine whether it has broken the law after a failed take-over bid pushed the limits of foreign ownership, Deputy Prime Minister Mark Vaile said Sunday.
Under the Qantas Sales Act, foreign ownership of the airline is capped at 49 percent but analysts say recent heavy share trading could have resulted in a higher proportion of stock being purchased by overseas investors.
Vaile said Qantas management had not yet determined what proportion of the iconic company was in foreign hands following last week's failed 11.1 billion dollar (9.2 billion US) take-over bid by a private equity consortium.
But he said the airline would ensure it complied with the law.
"In discussions that I've had with senior management from the company, they've given me a clear undertaking that they intend to maintain the share register in such a way that it remains compliant with the Qantas Sales Act," Vaile said.
"Now as the smoke clears, as it were, after the bid and the activity that has taken place on the share market, it will take a short period of time to ascertain the structure of the register.
Vaile said if the foreign ownership level breached the cap, Qantas would take action to bring it into line with government requirements. "There is a process that has been in place since Qantas was originally floated... where foreign investors, the last ones on are the first ones off if there has got to be an adjustment made," Vaile said. "And that's the action Qantas will take."
The proposed Qantas take-over ended in farce last week after the bidding consortium failed to gain the 50 percent of shareholder acceptances it needed to proceed and then engaged in an on-again, off-again tango with regulators.
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