Grant Samuel endorses Qantas bid as “fair and reasonable”

Qantas has released a 221-page target statement this morning and – surprise, surprise – it reveals that independent expert Grant Samuel has endorsed the $5.60-a-share takeover as "fair and reasonable". It’s pretty rare for an endorsed bid to ever produce a valuation range that is north of the agreed price, but Grant Samuel has also clearly stopped short of saying the private equity barbarians are paying too much.

Stephen Mayne

Feb 12, 2007

The experts put a floor under the bid at $5.18 – saying anything north of that was reasonable. And they warn that Qantas shares would fall towards the pre-bid price of $4.20 if the bid failed.

The official valuation range was $5.15-$5.98 – meaning that the takeover bid is pitched almost smack in the middle.

It’s pretty rare for an endorsed bid to ever produce a valuation range that is north of the agreed price, but Grant Samuel has also clearly stopped short of saying the private equity barbarians are paying too much.

About the Author

Stephen Mayne

Columnist and Crikey Founder @MayneReport

Stephen Mayne founded Crikey in February 2000 and has remained as a contributor since selling it in 2005. He’s a former Kennett government staffer and City of Melbourne councillor who is currently serving on City of Manningham in Melbourne’s east. He has also worked and volunteered in the shareholder advocacy and gambling reform space.