Charting an Icarian Flightpath: The Implications of the Qantas Deal Collapse

44 Pages Posted: 2 Nov 2007

See all articles by Justin O’Brien

Justin O’Brien

Harvard University - Edmond J. Safra Center for Ethics; University of New South Wales (UNSW)

Date Written: July 2007

Abstract

The failed bid for control of Qantas reveals a multitude of weak points in the governance of management buyouts. The paper situates the Qantas collapse within the context of an increasingly acrimonious global debate over the utility of private equity financing. Regulators in the United States, Australia and the United Kingdom have expressed concern that unrestricted expansion increases the risk of market manipulation and macroeconomic instability. The paper evaluates whether such concerns are justified by investigating the impact of private equity across a number of critical pressure points within the corporation and between it and those providing the intermediating services required to remain in or exit the public market.

Keywords: private equity, corporate governance, leveraged buyouts

Suggested Citation

O’Brien, Justin, Charting an Icarian Flightpath: The Implications of the Qantas Deal Collapse (July 2007). Available at SSRN: https://ssrn.com/abstract=1026343 or http://dx.doi.org/10.2139/ssrn.1026343

Justin O’Brien (Contact Author)

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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