A Qantas passenger plane
© AFP/File Greg WoodSYDNEY (AFP) - "We won't be changing the foreign investment rules," Howard told commercial radio, after confirmation from Qantas of a foreign approach stirred nationalistic rumblings in the Australian media.
The flag carrier said Wednesday it had been approached by Australia's biggest investment bank, Macquarie, and US-based private equity firm Texas Pacific Group in a deal potentially worth 10.9 billion dollars (8.4 billion US).
However current laws designed to maintain Australian control of Qantas prevent foreign ownership of more than 49 percent of its stock and limit any individual stakes to 25 percent.
"Nor will we be altering the caps on individual shareholdings," Howard said.
The prime minister said he did not want to see Qantas broken up but that he would not introduce new laws specifically to stop that happening.
"Whatever is allowed under the law will be permitted."
Howard's comments backed up those of his treasurer, Peter Costello, who insisted Thursday it was vital to keep such an important national symbol in Australian hands.
"It flies the Flying Kangaroo and the Flying Kangaroo says Australia -- and as far as I'm concerned, that means majority Australian ownership," Costello said.
Meanwhile Qantas chief executive Geoff Dixon said the takeover bid was still in its "very early days" and people should "take a cold shower and settle down."
Speaking in Singapore, Dixon said Qantas currently has about 46-47 percent foreign ownership "and any change of ownership that occurs in the future could only see that remain the same or indeed diminish."
The airline's shares, which surged to a record 5.25 dollars on Wednesday's buyout announcement before falling back, were up four cents to 4.97 dollars in early afternoon trade Friday.
©AFP