Auchland International Airport Ltd, fighting a takeover offer from Canada Pension Plan Investment Board, said a second group is considering a bid, sending shares of New Zealand's transport hub higher.
The potential bidder indicated its interest in November and will have access to the airport's accounts, Chairman Tony Frankham said in a statement yesterday, Bloomberg News reported.
The board opposes Canada Pension's US$1.4 billion offer for a 40-percent stake, which includes putting the airport's assets into a holding company and issuing new stock and convertible notes.
The prospect of a rival bid may be enough to slow acceptances of the Canadian offer, which closes March 13. The board is seeking proposals from investors with more aviation experience than the Toronto-based fund manager and plans to begin assessing alternatives early in 2008, Frankham said.
"You wonder if this is more a tactic from the airport board just trying to make the CPP bid seem less attractive," said Stephen Walker, principal of Walker Capital Management Ltd in Auckland.
"At NZ$2.70 (US$2.07) it was too cheap because the asset is still attractive," said Walker, who helps manage the equivalent of US$200 million.
Auckland Airport stock gained 8 cents, or 3 percent, to NZ$2.80 at the 5pm close of trading in Wellington, having reached a six-month low of NZ$2.70 this week.
Canada Pension is offering NZ$3.66 a share cash for 40 percent of the airport. It will then offer a convertible note valued at NZ$2.75, 20 New Zealand cents in cash and a share in a restructured airport company worth 70.55 cents.
Auckland Airport handles 70 percent of the tourists to New Zealand and stands to benefit from a forecast rise in visitors.
(Shanghai Daily December 24, 2007)
