AS AIRLINE Partners Australiacontinues to contemplate its next move on Qantas, Treasurer Peter Costello has said he would not stand in the way of another bid for the airline before the federal election as long as it proposes predominantly Australian ownership.

Despite talks again yesterday between members of the Macquarie Bank-led consortium, the group failed to reach a resolution about whether to return for a second takeover attempt for Qantas now or later, or abandon its plans altogether.

The Government is believed to be unhappy with the Qantas board and APA over their handling of the $11.1 billion takeover, which failed last Friday. It would prefer not to have to sign off on another unpopular bid to take over the iconic airline before the election if it can be avoided.

Mr Costello said it was not the Government’s role to welcome takeover bids for Qantas or any other company.

He said the Government would not support “any bid to go to shareholders unless it proposes majority Australian ownership”.

“If somebody wants to come along, some majority Australian bid, and they want to make an offer to the shareholders, that is up to them. I don’t welcome, I don’t encourage, I don’t discourage, I just make sure that (Qantas) stays in majority Australian ownership,” he said.

Asked if he had spoken to members of the consortium to suggest that it might be better for them to resubmit another offer after the election, Mr Costello said: “I don’t go into who I have contact with but as I said to you, it is not my business.”

Any revised bid would also have to get the support of the Qantas board, which is fuming that the takeover has turned into such a fiasco, putting many of their jobs on the line. It has said it will not endorse another takeover bid at the previous offer of $5.45 a share, which some perceived as being too low.

There was still no word from the Qantas board yesterday as it refused to take questions in the wake of the takeover debacle.

It is continuing with a reconciliation of its share registry, amid concerns that foreign ownership of Qantas was allowed to reach as high as 65 per cent during APA’s failed takeover attempt. It is required under the Qantas Sales Act to keep foreign interest at or under 49 per cent.

Overseas hedge funds continued to sell their stake in Qantas as Australian longer-term funds picked up the stock. Almost 56 million Qantas shares were traded yesterday. The airline’s share price dipped 1 to $5.22.

LONDON: Knight Vinke Asset Management, the activist investment firm that campaigned to block Suezs merger with Gaz de France, said it had asked the chairman and the board of HSBC Holdings to conduct a “fundamental review” of the banks strategy and management structure.

Knight Vinke, based in New York, disclosed its contact with HSBC in an e-mailed statement Friday. The firm wrote to HSBCs executive chairman on May 25, met with the group finance director on June 12 and wrote to the full board of the London-based lender on Sept. 4, according to the statement.

Earlier this year, an activist investor - the British hedge fund TCI - pressured ABN AMRO to sell split up to lift shareholder returns. The bank subsequently agreed to be taken over by Barclays and faced a rival bid from a consortium led by Royal Bank of Scotland.

Knight Vinke, led by the companys chief investment officer Eric Knight, targets large, publicly traded companies and seeks to recruit other institutional investors to press the companies management to change course.

HSBC, Europes biggest bank by market value, is seeking to expand into emerging markets as it suffers losses in the United States related to the collapse of the subprime mortgage market.

“It is not entirely clear what Knight Vinkes motivation is, but the timing does not seem right, it all seems bizarre,” said Antony Broadbent, an analyst at Sanford C. Bernstein in London. “It doesnt feel like the right time” for HSBC to get a good price for the sale of its U.S. unit, and the company has “refocused on emerging markets,” he added.

HSBCs shares rose 0.3 percent to 889 pence early in London, valuing the company at about 105 billion, or $212 billion. HSBC shares have declined 4 percent in the past three months, making them the best performer in the nine-member FTSE 350 banks index.

HSBC was not immediately available for comment.

Martin Forrest, a Knight Vinke spokesman in Monaco, declined to say what changes the firm wanted HSBC to make. He confirmed that Knight Vinke owned less that 1 percent of the lenders shares. Investors in Knights firm include the California Public Employees Retirement System, or Calpers, the largest public pension in the United States.

HSBCs provisions for bad loans, made primarily to U.S. borrowers with poor credit histories, climbed 63 percent to almost $6.4 billion in the first half of 2007, HBSC said in July. The company said Aug. 22 that it planned to close its Carmel, Indiana, office by the end of the second quarter of next year, eliminating 600 jobs.

The bank, which bought Household International, based in Prospect Heights, Illinois, for $15.5 billion in 2003, has scaled back home-equity loans and ousted the units managers.

Knight Vinke sold its less-than-one-percent stake in Suez in January after waging a campaign to derail the French gas utilitys planned merger with Gaz de France. The public contest helped push Suez stock to a record high.

Knight said at the time that he began selling when Suez stock hit \39, or $53, driven up by speculation that rival bidders would step in as the merger with Gaz de France stalled.

Knight argued in more than a dozen full-page advertisements, including in The Financial Times and Le Monde, that the French government-arranged merger was unfair to Suez shareholders. Knight rallied institutional investors to call for better terms in the deal.

Separately, HSBC Trinkaus Burkhardt, the German bank controlled by HSBC Holdings, would consider buying IKB Deutsche Industriebank after it had to be bailed out because of the U.S. subprime mortgage market rout.

“IKB, reduced to its core of classical long-term corporate lending, is interesting,” the head of HSBC Trinkaus, Andreas Schmitz, said in an interview in Frankfurt on Thursday. Both of the lenders are based in Dьsseldorf, which offers “certain synergies,” Schmitz said.

Luella Bartley on Cornwall

Where do you live?

In a small village called Trequite in north Cornwall. I have three kids. I love riding, I have a Portuguese horse called Ticao. I love surfing, and it’s four miles from the beach.

What was the last thing you bought in Cornwall?

At the tack shop in Sladesbridge, I bought a fluffy sheepskin number, which goes underneath the saddle.

What’s the one thing everyone should do in Cornwall?

Walk along the cliffs from Trebarwith to Boscastle.

Tell us about your favourite local

The Smithy in Welcome. I drink either Guinness or red wine. A friend of ours runs it and it’s great for Sunday lunch. Sometimes they have funny evenings, the last one was called Hunt or be Hunted - a fancy-dress night. I know it sounds very League of Gentlemen!

What’s the best takeaway meal in Cornwall?

We go to Padstow and have fish and chips from Rick Stein’s and eat them in the back of the Landy [Land Rover]. It’s a kind of after-the-beach thing to do.

What was your most memorable night out in Cornwall?

I love a night on the beach with a barbeque, lots of alcohol and lots of friends. Our house-warming party was quite amazing last summer. Everyone camped round the house: it was a free-for-all that lasted a couple of days. There was kids’ stuff such as treasure hunts in the day and then raucousness at night when the kids had gone to bed.

What’s in your secret Cornish address book?

St Kew Harvest farm shop in Wadebridge. It sells brilliant organic bread and cakes and delicious stuff. Acorn Antiques in Wadebridge, too. I just love the name, it sells great tat. The Mill House Inn at Trebarwith is lovely. I used to stay there before I moved. It’s simple, but really good.

What’s your favourite view in Trequite?

The view from the hut we built down at our pond. It’s beautiful, just lots of green. It’s heaven at sunset.

Tell us a Cornish survival tip?

Always take a coat or cagoule or some sort of protection from the rain.

What would you change about where you live?

Nothing. I wouldn’t make it nearer London because then everyone would live there.

What kind of music should you listen to in Cornwall?

Anything rock’n'roll, otherwise it goes a bit “folk” down here.

Who sells the best Cornish pasties?

I’ve just had a baby, so post-baby weight plus pasties equals disaster. I’m on a non-pasty diet. The best thing about Cornwall is the seafood.

What’s your favourite seafood restaurant?

We cook at home, mostly. The best fresh fish is from Port Isaac - there’s only one fishmonger. We always get prawns, lobster and samphire.

Matthew Williamson on Manchester

Where do you stay when back in Manchester?

At my parents’ home in Timperley or the Didsbury House Hotel in Didsbury Village.

What was the last shop you visited in Manchester and what did you buy?

Harvey Nichols on Deansgate to buy Diptyque candles.

What’s the best thing to do in Manchester?

Go to see Urbis in the Cathedral Gardens. As well as being a stunning building it always has a varied exhibition calendar. Whether it’s a design, photographic or contemporary art event, it has a strong focus on Mancunian city life. Urbis will be host to my 10-year anniversary exhibition when it starts to tour next year.

What’s your favourite local?

It’s not a pub, but I love the new Opus One in the Radisson Edwardian Hotel on Peter Street. The actual building used to be the Free Trade Hall, and lots of the old features are still there. The ceilings are really high, which makes for a really dramatic bar. You’ll find me there with a Bloody Mary to match the huge red chandeliers.

Do you have a favourite restaurant?

Lounge 10 on Tib Lane. Its interior reminds me of a traditional Parisian club with very strong colours and dark lighting. I like eating here with a big group of friends in the private dining room, Boudoir.

What do you think is the classic Manchester girl look?

The classic Manchester girl dresses confidently and is not afraid to experiment with new trends. There is a definite eccentricity and flair in her style.

What is your secret Manchester address book?

Barbakan Deli on Manchester Road in Chorlton. It is a Polish bakery-cum-deli, with amazing pastries and cakes - the speciality bread is the best. Harvey Nichols, Selfridges and all the top restaurants in Manchester are supplied by Barbakan.

What is your favourite view in Manchester, and why?

It would be from the Cloud 23 bar in the new Hilton hotel right in the centre of the city. You can see over the whole city, which looks amazing at night through the huge double-vaulted windows or peep-holes in the floor.

Best Manchester tip?

Always carry an umbrella.

What song reminds you of Manchester?

The Happy Mondays always remind me of my days at the Hacienda when I was 16!

Christopher Kane on Glasgow

Where’s the best place to stay in Glasgow?

Well, I stay at my mum’s in Motherwell. But if I stay in town I like Hotel du Vin at One Devonshire Gardens. It’s very posh.

What was the last shop you visited in Glasgow?

Probably Cruise, which sells high-end clothes. I didn’t buy anything, I went for research because I’m looking for a stockist in Glasgow. Mr Ben Vintage Clothing is a good little shop. I got a great army jacket there four years ago and it’s one of the best patterns I’ve ever seen, it has an amazing pocket detail.

What do you miss about Glasgow when you are not there?

They know how to have a good time in Glasgow.

Tell us about your favourite local

Rab Ha’s on Hutcheson Street. Last time I went with my sister Tammy and her boyfriend. My drink is vodka and lemon and lime.

What’s the best thing to do in Glasgow?

For the best city walk, start at the Glasgow School of Art and walk into the West End. It’s more arty up there than in the actual city centre. Glasgow has fantastic museums and galleries, too. There’s the Kelvingrove Art Gallery and Museum, which houses Salvador Dali’s painting Christ of St John of the Cross. The gallery has just been renovated and is amazing. It’s in a huge Victoria and Albert-style building. Then there’s the St Mungo Museum of Religious Life and Art, and The Burrell Collection is really good, too. It has Monet, Picasso and amazing pieces of sculpture.

What’s your favourite restaurant in Glasgow?

Cafй Gandolfi in Merchant City. A lot of people go there before they go to the theatre, but it’s a really cute little bistro and has the most amazing goat’s cheese salad.

What’s your most memorable Glasgow night out?

Any Christmas Eve in Princes Square.

What’s your favourite takeaway?

The Chanda Cottage in Motherwell - the food is really rich and tastes so good. I like chicken curry with peshwari nan, pickles and mango chutney.

What’s the classic Glasgow look?

It differs in different parts of the town. In the West End it’s quite trend-oriented, as there are a lot of art students who are into individual style. As you go into the city centre it’s more about designer labels: Glaswegians love their Gucci, Prada and Versace. They treat themselves a lot and they’re generous with their money, especially on a Friday night.

What’s your best Glasgow memory?

When I got my acceptance letter into Central St Martins about six years ago. I went into town to see my sister, who was working in Karen Millen on Buchanan Street. We ran into Princes Square and we opened the letter. I screamed. It was kind of memorable standing there.

Is the public transport any good?

The underground is really old, so there are hardly any stops. It’s really beautiful in an old-fashioned architectural way. It looks like something from Barbarella.