These negotiations resulted in the removal of unacceptable conditions and a substantial break fee as well as an increase in the price from $5.50 to $5.60 per share.
Margaret Jackson (Chairman) said the proposal provided an attractive premium for Qantas shareholders, being 33 percent higher than the closing share price of $4.20 on 6 November 2006, the day before the first speculation about the offer; and 61 percent above Qantas' volume weighted average share price of $3.48 over the six months to that date.
Airline Partners Australia initially announced that it had failed in its bid for Qantas, having gained approval from only 46.5% of the company, when the offer closed at 7.00pm (Sydney Time) on Friday 4 May 2007.
Later that evening, however, APA received an acceptance from an additional 4.96% of Qantas shares, held by a Samuel J. Heyman's hedge fund.
However, on Sunday 6 May 2007, the Takeovers Panel ruled that Airline Partners Australia did not have the minimum holding required at 7.00pm, Friday 4 May, as stipulated in the bid.