Shareholder scuttles Qantas bid

Sydney: Qantas shareholder today threw in to disarray the $8.7-billion bid led by Macquarie Bank for the airline.

Key shareholder, Balanced Equity Management, said it would vote against the offer, the world's largest airline takeover, forcing the buyout group to rethink its deal.

Analysts say there were now fears other shareholders would also reject the bid, which needs the backing of 90 per cent of shareholders to succeed.

Hedge funds and other institutions hold nearly 60 per cent of Qantas stock

Shares in the Australian carrier slumped as much as 6 per cent on fears the deal would faa through as fund manager Balanced Equity Management, which holds a 4-per cent stake, said it did not plan to accept the offer from a consortium).

The bid consortium, Airline Partners Australia, said in a statement it was considering a 'range of alternatives' in response to Balanced Equity`s decision. It cannot legally raise its offer.

The Australian government, despite some political and union opposition, has backed the sale of the national icon, dubbed the Flying Kangaroo.