CS First Boston lands airport sale study

By DANIEL RIORDAN

Auckland City Council has chosen Credit Suisse First Boston to prepare a scoping study on the sale of its Auckland International Airport shares.

The 108.171 million shares, representing 25.7 per cent of the company, are worth $474 million at the current share price of $4.38.

The investment bank, which on Monday said it was selling its New Zealand operations to local senior management, headed off 11 contenders for the job. It won from a shortlist believed to include ABN Amro and JP Morgan.

The council knew of the ownership changes at CSFB, so its decision can be seen as a vote of confidence in local managers of the as-yet-unnamed new company, which has formed an alliance with CSFB internationally.

The study is to be finished in May. The council's final decision on whether to sell will be made in June as it completes its annual plan.

If the council does sell - it decided to do so in principle in December - it will seek proposals from parties keen to handle the sale.

Council finance director David Rankin said there was no agreement that the council would give the sale process to the investment bank.

Rankin cited CSFB's "international reputation and credibility" and said the CSFB decision was unanimous.

CSFB is working on several airport transactions overseas.