On November 24, Qantas Airways' chief executive sought to dampen rampant speculation about a multinational consortium's bid for Australia's national carrier as the government strongly hinted it wouldn't move to block the deal if it complies with current foreign ownership laws.

"It's very early days and I suggest some people take a cold shower and settle down," Qantas Chief Executive Officer Geoff Dixon told reporters in Singapore, referring to the reaction since the airline confirmed on November 23 that it had been approached.

Qantas shares have seesawed, soaring as much as 20 percent immediately after the carrier revealed the audacious bid jointly led by Australia's largest investment firm, Macquarie Bank, and US private equity investor Texas Pacific Group, then falling back as legal and political hurdles emerged.

On November 24, the stock rose 0.2 percent to close at A$4.94 after Prime Minister John Howard said the government would not change foreign investment laws to block the Qantas takeover if it complied with existing laws.

"Whatever is allowed under the law will be permitted," Howard said in a radio interview with Southern Cross Broadcasting.

Howard said he shared the concern of Australians opposed to iconic Australian companies being sold into foreign hands, but that open markets were best for the economy.

"Emotionally I don't like it any more than you or your listeners," Howard said. "We can't have it both ways. We can't expect the world to be Australia's oyster yet resent it when foreigners buy into Australian assets."

News of the bid, as well as press reports that Belgium-based InBev SA is considering a bid for Foster's Group, the Australian brewer, have triggered nationalist sentiment in the Australia media and on talk radio.

Qantas, sometimes known as "The Flying Kangaroo" for its distinctive logo, is a major Australian company and a takeover by a foreign buyer is perceived to be politically sensitive. Federal elections are due next year, making the issue extra sensitive for the government.

The government owned Qantas until 1995, and passed legislation when it was privatized that sets a cap on the amount foreigners can own and other measures to ensure it is Australian-controlled.

Neither Qantas nor Macquarie have released details of the proposed deal - priced by analysts at up to A$11 billion (US$8.5 billion) - but Macquarie says any bid would be made within existing laws.

The possible deal is believed to involve Macquarie taking a 25 percent of Qantas, other Australian investors another 25 percent, Qantas senior management one percent, and foreign investors led by Texas Pacific the remaining 49 percent.

Current laws bar any one investor holding more than 25 percent of Qantas, and foreign investors from holding more than 49 percent.

Dixon said foreign investors now own about 47 percent of Qantas, and this share was unlikely to change.Touching on one of the key political flashpoints, Dixon said 93 percent of Qantas' workers are employed in Australia "and this is unlikely to change."

On November 24, Qantas issued a statement addressing media speculation that senior executives might take a share of the company as part of the bid. It said Dixon said he has "had no discussions with any member of the consortium looking at taking equity in Qantas about his future role, remuneration or equity in any new company."

Howard indicated he would look unfavorably on another reported possibility - breaking off some of Qantas' assets.

"There is not a case for breaking up Qantas," Howard said.

Also, Australia's chief competition watchdog Graeme Samuel said he was aware of speculation that Macquarie's ownership of Sydney Airport, Australia's largest, could represent a conflict of interest if it became a major Qantas stakeholder on November 24.