Order Description
Assume that Swire Pacific Limited, with significant investments in mainland China, is considering a strategic investment in Qantas Airways Limited with the intention
of becoming a major shareholder. As an analyst working with Swire Pacific Limited, prepare a report which includes:
1. A brief background on business environment in Australia, operations of Qantas (domestic and international) and Swire Pacific Limited within the global context
2. Comments on the impact of currency fluctuation on Qantas’ business and approaches they have used to manage currency risk
3. Comments on the potential impact of currency fluctuation on a potential acquisition and approaches to managing this impact
4. Comments on the impact of a sharp fall in A$ against major currencies on the acquisition (include transaction and translation exposure in your answer) and
approaches to hedging
5. An investment recommendation to Swire Pacific Limited supported by appropriate quantitative and qualitative information relevant to a cross-border transaction.
Use library links to access relevant research databases and most recent financial reports and market disclosures. Also, the following should provide you with
background information.
