The value in Qantas...

The Herald is right: if the Chairman and board of Qantas didn't realise what the company was worth until the private-equity bid, then you really have to ask what on earth they are doing? Again, this highlights the trouble with leveraged buy-outs where the incumbent management team isn't going to be replaced. That is, there is an obviously conflict of interest that the managers face between 1) obtaining maximum value for the shareholders and 2) being able to buy the company cheaply to make more personal profits when the company is subsequently sold back to the public.