Sydney Airport board rejects $16.6 billion buyout proposal
By Jamie Freed
Reuters
SYDNEY (Reuters) -Sydney Airport Holdings Pty Ltd said on Thursday it would reject a A$22.26 billion ($16.6 billion) takeover proposal from a group of infrastructure funds, the biggest of a frenzy of Australian deals in reaction to record-low interest rates.
The operator of Australia s largest airport said directors had unanimously concluded the proposal undervalued the airport and was not in the best interest of shareholders. If successful, it would have been one of Australia s biggest buyouts.
Record-low interest rates have prompted pension funds and their investment managers to chase higher yields, leading to recent asset purchases from Telstra Corp and Qube Holdings.
Qantas Airways Ltd says it has pushed back its target for a widespread resumption of international travel from Australia by four months until the end of October when the country’s vaccination programme is expected to conclude.
The airline grounded its international fleet last March and a domestic recovery has been hampered by state border closures, leading to a 75 percent fall in revenue to 2.33 billion Australian dollars ($1.9bn) in the six months to December 31.
Qantas on Thursday said it swung to a 1.03 billion Australian dollar ($821m) first-half underlying loss before tax, its most closely watched financial measure, compared with a 771 million Australian dollar ($614m) profit a year earlier.
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Aurizon shares falter on global coal outlook
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A gulf has opened up between Aurizon and the broader sharemarket as the rail haulage groupâs investors become more pessimistic about future demand for Australian coal because of more countries slashing carbon emissions.
Aurizonâs shares, which have slid 30 per cent over the past 12 months to trade at $3.73, are now trading at their biggest gap to the broader Australian market since the company listed a decade ago, despite an ongoing stock buyback.
Aurizonâs shares have been sliding as investors worry that global demand for coal will fall as countries cut carbon emissions.Â