Qantas under take over threat from Texas money men

Qantas could be worth $10 billionAustralia's national carrier, Qantas, has confirmed it has been approached by Macquarie Bank and the Texas Pacific Group (TPG) amid speculation of a takeover that could be worth more than $A10 billion ($US 7.7 billion).

The approach, made on behalf of an unnamed consortium, was "confidential and incomplete" and was being investigated by Qantas, the airline's acting company secretary, Cassandra Hamlin, said in a statement to the Australian Stock Exchange.

Macquarie Bank Ltd. didn't immediately comment. A spokeswoman for Texas Pacific Group said she had no comment.

Australia's largest airline, Qantas Airways Ltd. said it has undertaken discussions with a range of individuals and companies, including airlines, on possible partnerships, joint ventures and acquisitions over a period of years.

Market analysts said there was speculation Macquarie was preparing an 5.50 Australian dollars-a-share cash offer for Qantas, which would value the airline at almost 11 billion Australian dollars ($8.47 billion).

Qantas' share price leapt by as much as 20 percent to a seven-year high of 5.25 Australian dollars before falling back slightly, and the news prompted a turnaround from losses this week in the broader market, pushing the S&P/ASX 200 up 1.4 percent.

Acting Prime Minister Mark Vaile said he was sure the airline and its iconic red flying kanagaroo would remain in Australian hands

"I think there will always be a significant level of Australian ownership,'' Mr Vaile said.

"Obviously, with the foreign ownership cap, there will always be a majority Australian ownership of Qantas.

"But I can confidentially predict you will never see the (flying kangaroo) moved off the tail of Qantas aircraft.''