KEY POINTS:
Auckland International Airport has confirmed that it is still in talks with Canada Pension Plan Investment Board.
The proposal, valuing the airport at $4.76 billion is "complex," the company said yesterday.
Infratil's move this week to seek a seat on the airport's board may be a step toward thwarting Canada Pension.
Auckland City also confirmed yesterday that it would consider any formal proposal from Canada Pension Plan Investment Board (CPPIB).
"The CPPIB concept that has been reported in the media appears to meet key council objectives and criteria, and any formal offer will warrant close scrutiny," the council said.
"The council has had high-level discussions with various parties but has not made agreements with any of them."
The airport's shares are trading well below CPPIB's $3.70-a-share cash offer for a "significant" minority stake in the company. The share price rose 5c yesterday to close at $3.07.
The airport company said it was responding to "market rumours relating to the status of discussions."
Lloyd Morrison, chief executive officer of Infratil, is seeking to become a director after the Wellington-based investment group acquired 6.2 per cent of the airport's shares in August.
Infratil may have been able to team up with other shareholders to thwart CPPIB's ambitions.
"Any proposal, whether from one of the parties now identified as interested in a shareholding in Auckland Airport or someone new, will be treated on its merits," Infratil said.
Auckland and Manukau Cities are also seeking seats on the board. The nominations will be considered at the annual meeting on November 20.
-Bloomberg and staff reporter
