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Auckland International Airport says it has ended discussions with a third party that had expressed interest in making an offer for the airport company in late December.
At the same time AIA said the bid by a Canadian pension fund was gaining little support.
Auckland Airport chairman Tony Frankham said discussions with the potential bidder last night made it clear the terms proposed by the party concerned would not meet the board's requirements.
"As a result, both parties felt it was preferable to end discussions at this point. The party concerned has advised us that they will not be proceeding further."
Due to a confidentiality agreement signed with the third party, it was not possible to provide further information, Mr Frankham said.
The announcement the mystery party had been showing interest came a week after the Canada Pension Plan Investment Board (CPPIB) opened its $3.6555 a share bid to take its stake in the airport to 40 per cent.
CPPIB was seeking to increase its 0.78 per cent holding in the airport, but yesterday the Takeover Panel said it had only received acceptances for over 48.3 million shares, 3.9 per cent of the shares on issue. The offer closes on March 13.
Under the terms of the offer, CPPIB needs to gain at least 39.2 per cent of the airport company's shares and must also win a majority in a shareholder vote in order to win the stake.
A total of 4.6 per cent of shareholders had cast their votes, and of those 77 per cent opposed the bid.
AIA's has opposed the Canadian bid, saying it does not recognise the full value of the airport and because it would raise its debt levels.
The fund has proposed a capital restructuring if the bid succeeds, which would see shareholders given a mix of shares and convertible notes in a new company.
Shares in Auckland Airport, 23 per cent controlled by the Auckland and Manukau city councils, fell 3 cents to $2.71 today.
Shareholder discontent at the way the company has handled prospective takeovers led to the resignation of the chairman and three new board members appointed at its annual meeting in November.
In September, state-backed Dubai Aerospace Enterprise withdrew a bid for a stake of up to 60 per cent equal to $3.80 a share, saying the board had not done enough to promote the deal.
The airport's sale is politically sensitive, with opponents arguing it would lead to foreign control of a strategic asset.
- NZPA
