KEY POINTS:
An academic believes Australia is likely to be concerned if Dubai Aerospace Enterprise's bid for Auckland International Airport succeeds.
The Arab company plans to launch its bid via a $2.6 billion "scheme of arrangement", which requires approval of 75 per cent of shareholders (a full takeover bid would require 90 per cent). It is offering $3.80 a share.
Paul Buchanan, an expert in international relations at Auckland University, says Australia could worry that if the Dubai company succeeds in gaining a controlling interest in the Auckland company, it could provide a way for Middle East investors to get into the Australian market via the back door.
He says while there is no greater risk of terrorist threats from the involvement of an Arab firm in the airport, there could be security adjustments.
"What we may see is an increase in security at the airport at least on the part of these investors because of their overriding concerns about what is going on in their home patch."
Dr Buchanan says the Dubai firm's bid is a very aggressive move into the transportation sector and part of its on-going expansion strategy.
Dubai Aerospace is not the only party interested in the airport. Craig Brown from Walker Capital Management says there are at least eight other companies interested and they could be make a counter offer. He says Dubai Aerospace seems to be the only company with airport experience.
* Southern Hemisphere airports may be a new venture for companies from the United Arab Emirates, but a Dubai conglomerate has already made inroads into the shipping industry across the Tasman. A quick check of the assets of Dubai Port World shows the company owns container terminals in several Australian ports already, including Brisbane, Sydney, Melbourne, Adelaide and Fremantle.
- NEWSTALK ZB, NZHERALD STAFF
