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Auckland International Airport yesterday confirmed at least two parties are conducting due diligence on its business but said the work was not necessarily leading up to a takeover bid.
The confirmation came as 14 million shares in the airport - about 1 per cent of the company - were snapped up in a single trade at $3.30 each.
Speculation about a potential takeover has mounted since the board revealed last month that the Canada Pension Plan Investment Board had offered some shareholders $3.10 each for their shares. The airport said it was in talks with the Canadians and others about acquiring a stake in the business.
Auckland Airport director Mike Smith said yesterday that more than one party was conducting due diligence, but he played down reports of takeover offers.
"There are a whole range of possibilities why someone might want to conduct due diligence and what they might want to do," he said. "Until people have completed their due diligence I can't speculate on that. We're not necessarily in control of that process."
Smith declined to say how many or which parties the airport was speaking to.
Auckland Airport closed down 3c at $3.25 yesterday.
Manukau City Mayor Sir Barry Curtis reiterated that the council had had two approaches about selling its 10.5 per cent stake - but he denied a report that one was from Dubai International Airport.
However, "we are aware that they are floating around in the wind", he said.
Manukau is known to have been approached by Canada Pension Plan.
Curtis declined to reveal the name of the other party, but said it was not Macquarie Airports, which is rumoured to be interested in Auckland Airport.
"We are in discussion with two parties and the officials are just assessing those discussions with a view to reporting further to the council at the appropriate time."
He said no decision had been made yet on a sale. However, Auckland City Council is consulting the public about the possible sale of its 12.75 per cent shareholding
Dubai International Airport was not available last night.
Auckland Airport yesterday released data showing 5.9 million international passengers used its facilities in May, up 6.5 per cent on a year ago.
Goldman Sachs JBWere transport analyst Marcus Curley said May was a good month for the airport, with more than 10 per cent more New Zealanders travelling overseas to take advantage of the high currency.
Smith said there was no deadline for the due diligence.
"If they want to proceed it's a major transaction, so I don't think we'll try and put deadlines on them. They'll go at their own speed."
