=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2007/03/01/financial/= f011032S98.DTL --------------------------------------------------------------------- Thursday, March 1, 2007 (AP) $8.6 Billion Acquisition of Qantas OK'd (03-01) 01:10 PST SYDNEY, Australia (AP) -- The proposed $8.6 billion acquisition of Qantas Airways Ltd. by an investor group cleared a hurdle Thursday when the Australian competition watchdog said it will not oppose the sale. The Australian Competition and Consumer Commission, or ACCC, said while market inquiries during a comprehensive review of the proposed acquisition had revealed a range of potential competition issues arising from the interests of the bidding consortium members, it ruled the deal is "unlikely to substantially lessen competition" under federal trade laws. Qantas' board has recommended shareholders accept the bid by Australia's Macquarie Bank, Forth-Worth based Texas Pacific Group, Canada's Onex Corp. and others, which was first announced mid-December. It would be one of Australia's biggest-ever corporate takeovers. ACCC chairman Graeme Samuel said while the regulator has closely reviewed whether Macquarie Bank's "partial direct and indirect interests" in Qantas and Sydney Airport could lead to discrimination in favor of Qantas by Sydney Airport management, it appeared there are "not clear incentives" for the bank to do this. The ACCC found there is not likely to be a substantial lessening of competition across a range of aeronautical services, domestic and international air passenger services, aircraft parts and leasing, airline catering and ticketing services. In a statement, the bidding consortium Airline Partners Australia said it welcomes the ACCC ruling and has worked with the regulator to "address all relevant issues in relation to our bid." The government's Foreign Investment Review Board is due to report to Treasurer Peter Costello next week on whether the bid breaches foreign ownership laws. Costello can block the sale if he believes it would not be in the national interest. Costello said that a Senate inquiry announced Thursday into the sale wou= ld not delay his decision. ---------------------------------------------------= ------------------- Copyright 2007 AP