CPP a step closer with airport bid 

The Canada Pension Plan is a step closer in its controversial bid for a 40% stake in Auckland International Airport.
 
Shareholders had until 5pm on Thursday evening to vote on the deal, and just under 63% have offered to sell their shares to the Canadians.

But the result of a second and crucial vote, on whether shareholders support the deal, has yet to be revealed.

It is still uncertain whether the second vote, on the deal going ahead or not, will also go the Canadians' way. CPP will still need 50% majority acceptance.

Business analyst Brian Gaynor adds that they will get the required number of shares, but it's not clear if they'll get the 50% tick from shareholders.

Gaynor says if they get that and the government then steps in to kill the deal, Kiwis can expect another battle from the Canadians because according to him they have poured too much money and time into the acquisition to give up.

He predicts the Canadian Pension Plan will hang on in its fight for Auckland Airport.

But it will be up to two government ministers, David Parker and Clayton Cosgrove, to give any deal the final sign off.

The government has already signalled its disapproval of foreign ownership. In an effort to turn that around, the Canadians have offered to slash their voting rights by about 15%.

"Reducing our voting requirement to 24.9% fits within the spirit of the changes to the legislation," says Canadian Pension Plan Spokesman Graeme Bevan.

On Wednesday night the Auckland City Council voted not to sell its 13% stake in the asset.

They did not think it was in their ratepayers' best interests.

The meeting was interrupted by protester Penny Bright, who argued her right to stay in the closed meeting and was arrested by police.

The council voted unanimously not to support the Canadian bid for a 40% stake in the airport.

In the end though the council stake did not matter.

The Canadian Pension Plan will find out on Friday morning if shareholders decide the deal should take off or not.