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http://www.smh.com.au/articles/2007/05/18/1178995381960.html?sssdmh=dm16.260652

APA rumoured to be after British Airways

May 18, 2007 - 1:45PM

The private equity consortium that failed to take over Qantas may be
lining up a more ambitious target - British Airways, if market rumours
are correct.

Reports from the United Kingdom linking the Macquarie Bank-led
consortium with the world's premier airline fuelled a 2.35 per cent
surge in its share price.

British Airways has a market capitalisation of STG5,848 million ($A14.06
billion).

Any attempt would have to include a takeover premium, making it
significantly more expensive than the $11.1 billion the APA consortium
was prepared to invest in Qantas.

"The big international houses are pushing the story," said Aequs
Securities broker, Stuart Faulkner.

"That's why Allco Finance Group's running up. They're tightly aligned
with this.

"They're saying Allco would be the prime candidate and it would be the
same deal for Qantas rolled out for British Airways.

"It makes sense if they're operating on a global basis - you go for a
global brand and British Airways is number one, with Qantas probably
number two," he said.

Allco Finance Group and its sibling company, Allco Equity Group, were
key partners in the Macquarie Bank-led APA consortium, which also
included US private equity giant Texas Pacific Group and Canada's Onex.

At 1311 AEST on Friday Allco Finance Group shares were up more than two
per cent or 23 cents to $11.52. Allco Equity Partners was also up four
cents, or one per cent to $3.98 and Macquarie Bank had climbed $1.79, or
1.85 per cent to $98.29

APA had no comment on the rumours.